Marriott International, Inc. operates, franchises, and licenses hotels and timeshare properties worldwide. It operates through three segments: North American Full-Service, North American Limited-Service, and International. The company also licenses the development, operation, marketing, sale, and management of vacation ownership and related products under the Marriott Vacation Club, Grand Residences by Marriott, The Ritz-Carlton Destination Club, and The Ritz-Carlton Residences brands to the Marriott Vacations Worldwide Corporation. In addition, it operates, markets, and develops residential properties, as well as operates and franchises hotels and resorts; and provides services to home/condominium owner associations.
Take a look at the 1-year chart of Marriott (NASDAQ: MAR) below with my added notations:
MAR has formed a support level near $77.50 (green). In addition, the stock is declining against a short-term, down trending resistance level (red) over the past several of weeks. These two levels combined have MAR stuck within a common chart pattern known as a descending triangle. Eventually, the stock will have to break one of those levels.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: MAR has a down trending resistance and a $77.50 support level to watch. A long trade could be made on a breakout through the resistance or on a pullback to $77.50. A break below the $77.50 support would be an opportunity to enter a short trade.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach