From around mid-July, the Marriott International Inc stock (NASDAQ: MAR) continues to trend lower, trading below a medium-term downside resistance line drawn from the high of July 16th. Last week, the price found good support near the 116.80 zone, from which it rebounded and is now trying to recover some of its losses. That said, as long as MAR stays below the above-mentioned downside line, we will continue aiming lower.
If the stock rises a bit more, but struggles to move above the aforementioned downside line, this move higher might be considered as a temporary correction before another leg of selling. Once again, we will aim for the 116.80 hurdle, a break of which would confirm a forthcoming lower low and we could see MAR moving towards the next potential support zone, at 114.50, marked near the lows of February 8th and 12th. If that area is not able to withhold the slide, its break may open the way to the 111.35 level, which is the high of January 16th.
Our oscillators, the RSI and the MACD, are currently in support of the above-mentioned idea. The RSI is pointing slightly higher, but still sits below 50. The MACD is also pointing a bit to the upside, but remains below zero.
On the other hand, if the previously-discussed downside line fails to keep the price down, its break and a price-rise above the 131.40 barrier, marked by the high of September 19th, could invite more buyers into the game and we could see a push towards higher levels. We will then examine a possible move to the 135.40 hurdle, marked by the highest point of September, which might stall the stock for a bit. We could even see a small correction back down, but if MAR stays above that downside line, we will continue targeting higher areas. Another test of the 135.40 obstacle could force it to surrender and open the door for a further move up, potentially aiming for the 141.70 barrier, which is the high of July 25th.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.