Marriott Takes a Dive, and Now I'm Wondering: Did I Miss Check Out?
Wall Street gives the hotel giant a bad review after mixed earnings, so let's check the charts.
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Wednesday morning hotel giant Marriott MAR reported an unadjusted earnings per share of $2.50, which beat analysts' estimates by $0.02, but revenue of $6.44 billion missed estimates by $30 million. The hotel chain lowered fiscal 2024 guidance below Wall Street's views thanks to a soft Chinese market. The stock sank 4.80% in trading yesterday, so let's see what the charts suggest today.
In this daily bar chart of MAR, below, I can see that prices have been weakening since April. Prices are trading below the 50-day moving average line and its slope is mostly negative.
On Wednesday MAR closed below the still-rising 200-day moving average line. The math-driven On-Balance-Volume (OBV) line has been weakening since early April and tells me that sellers of MAR have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been weak since February and is now below the zero-line in sell territory.
In this weekly Japanese candlestick chart of MAR, below, I can see a weakening setup. Prices made a lower high in July and are now trading below the 40-week moving average line. The weekly OBV line has been in a decline since February. The MACD oscillator crossed to the downside in March and is now close to the zero-line.
In this daily Point and Figure chart of MAR, below, I can see that the software is projecting a potential downside price target in the $193 area.
In this second Point and Figure chart of MAR, below, I used weekly price data with a five box reversal filter. Here the software is suggesting a price target in the $157 area.
Bottom line strategy: MAR could make a short-term bounce to the upside but the path of least resistance looks to me to be lower. I will continue to stay mostly in Marriott's when I travel but I will be recommending avoiding the long side of the stock.
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