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Let Me Sleep On It

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It has been a wobbly few weeks as the market has swung back and forth. The indexes are at their highs and mega-cap tech has reported strong numbers. The Nasdaq is looking to close out Friday at all-time highs.

I keep looking toward the travel and tourism area for the reopening trade. The airlines have been trying to move higher and I wrote two articles about that earlier (Airlines Struggle With Takeoff, Can Airlines Fly?).

Wyndham Destinations (WYND) is up against the 2018 and 2019 resistance. To close out the week, it is sitting on the line. A breakout to multi-year highs looks to be coming up and it kicks out a 3% dividend. I could sleep on that.

Marriott Hotels (MAR) bought Westin Hotels in 2016. The company has a massive number of brands under the umbrella. On the chart, Marriott is very close to breaking the one year downtrend. Multi-year resistance is at $145, but Marriott was just starting to breakout when COVID-19 hit. It looks like it is on its way after bouncing off horizontal support this week.

Lastly is Hilton Worldwide (HLT), which is pushing up against 2020 resistance at $115. Over the last three months, the stock has been consolidating. The PPO has been moving sideways on Hilton, but it appears to be gathering energy for its next push.

With the number of vaccinations passing the number of people with COVID-19 in the USA, it looks like this could be a nice inflection point for a move higher. I can't imagine the hotel business getting worse than 2020, so it looks like a nice place to consider. I'll sleep on it for a little while. Stay safe and have a good weekend.

Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies


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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA). Learn More
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