Hotel Stocks seem to go through their own rotation. Some are up then others catch up as the leaders rest or pullback. An inter-sector rotation among the market sector rotation. Lately Choice Hotels, $CHH, has been the leader catching up to the previous leaders that have been consolidating. It is starting to look overbought though and Hyatt, $H has just broken out of consolidation higher to take over the leadership. But what is most interesting is that those 3 others consolidating, the previous leaders, are waiting in the wings for you to check in before they break out for their next move. Every one of these has a Relative Strength Index (RSI) that has reached technically overbought levels and then pulled back as it progressed through the flag. Take a look.
Starwood Hotels & Resorts, $HOT
Starwood Hotels & Resorts, $HOT, completely retraced the move lower and has been consolidating there for 2 weeks. Now with the 20 day Simple Moving Average (SMA) closing in it looks ready to break out higher. A move over Tuesday’s close at 6.63 continues the Measured Move higher to 64 and can be traded against a stop within the flag.
Marriott, $MAR
Marriott, $MAR, is also consolidating in a bull flag after a big move higher. For this name a move over 39.50 carries a Measured Move higher to 42.50. After two weeks of resting it is time to put this on your radar.
Wyndham Worldwide, $WYN
Wyndham Worldwide, $WYN, is the third name consolidating in a bull flag. This one has a Measured Move higher to 60 on a break over 56.75.
*Post courtesy of Greg Harmon at Dragonfly Capital.
No comments:
Post a Comment