Book a Hyatt Next Time
- Posted by Greg Harmon
- on May 2nd, 2012
On line travel booker’s are flying high. Hotel stocks have been trading up since Marriott, $MAR reported a couple weeks ago. The next hotel stock to break out is likely to be Hyatt Hotels, $H. The chart below shows it approaching resistance at 44.50 with the industry tailwind. This is also completing a ‘W’ pattern and would create a target of 49 on a break of resistance. There is support
for more upside from a rising and bullish Relative Strength Index (RSI) and a positive and increasing Moving Average Convergence Divergence (MACD) indicator. Sounds great right? But backing out to the weekly chart makes it look like you might want to book an extended stay. Any move higher on the weekly triggers an Inverse Head and Shoulders pattern with a price objective of at least 60. Not bad for a $44 stock. Now it just needs a catalyst. Luckily it is expected to report earnings Thursday morning before the open. How timely. Look for strength in the pre-market as a signal to pull the trigger on the stock.
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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.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)

