So Many Good Hotels to Choose From this Summer
- Posted by Greg Harmon
- on June 22nd, 2011
The summer travel season is here and many people are making plans. Unless you have your house (or share) in the Hamptons, a major part of those plans is selecting the right hotel. With so many choices how do you choose. If you trade or are involved with money management I have the perfect solution for you. Make your choice based on the technical analysis of the hotel stock price, then use the trip to develop your fundamental thesis and write it all off. Genius! Here are four hotel stocks that are setting up to move higher to get your trip, I mean analysis, started. I am off to talk about this strategy with my accountant.
Choice Hotels, ticker: $CHH
Choice Hotels, $CHH, portfolio contains many discount brands like Comfort Inn, so it may not surprise you that it’s chart looks the best. It has been building a base between 32.00 and 33.38 for a couple of weeks after a fall lower. It’s Relative Strength Index (RSI) has rising out of the technically oversold area and its Moving Average Convergence Divergence (MACD) indicator has crossed positive. If it can get over 33.38, then it has room to run to resistance at 34.60-34.80 followed by 35.50 and 36.00 higher.
Hyatt Hotels, ticker: $H
Hyatt Hotels, $H, is more upscale but also is ready to break higher. It found support at 39 and is now testing resistance at 40. Above 40 it can run higher to 41.20 and then 42.25. It also has a RSI that is moving up and a MACD which is about to cross positive.
Marriott International, ticker: $MAR
Marriott International, $MAR, has a range of properties from Courtyard all the way up to Ritz Carlton. Plenty of research opportunities. After finding support at 33 it is now testing the break out level of 34.62. It has a rising RSI and a MACD that is improving but not quite ready to cross yet. It may take a day or two beyond the choices above, but if it does break resistance then look for it to run to the gap area at 35.41 and then 36.35 if it gets through the gap.
Starwood Hotels & Resorts Worldwide, ticker: $HOT
The Starwood Hotels & Resorts Worldwide, $HOT, portfolio contains some nice boutique like hotels and if travelling to New York City, the St. Regis. It found a bottom at 51 and is now testing resistance at 54.50. If it can get over 54.50 then there is resistance higher at 56.20 and then likely consolidation and congestion until 61.75. It has a RSI that is rising and a MACD that is improving on the way to a potential positive cross. Not the best of the set ups, but did I mention they own the St. Regis?
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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