Marriott Raises the Roof on Stock Prices

 | May 18, 2017 | 3:39 PM EDT
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Marriott International  (MAR) has been "on fire" since the end of October, soaring more than 50% in less than seven months. Think about the annualized rate of return!

Prices are rallying from a high-level two-year consolidation pattern in 2015 and 2016 and it looks like there are more gains ahead for this global multibrand hotel chain.

In this daily chart of MAR, above, we can see how prices started their liftoff move late October/early November. Prices turned up and the slopes of the 50-day and 200-day moving averages turned positive. The daily On-Balance-Volume (OBV) line turned upward and has been strong, telling us that buyers of MAR have been aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in early November for a buy signal and it has remained above the zero line.

In this weekly chart of MAR, above, we can see the saucer or rounded-bottom consolidation or base pattern. MAR has been above the rising 40-week moving average line. Notice how prices get moving when they break above $80, the early 2015 highs. The weekly OBV line is pointed up and confirms the price strength with aggressive buying/accumulation. The weekly MACD oscillator is also very bullish.

In this Point and Figure chart of MAR, above, we can see the big base pattern and the rapid rise once prices trade at $73. We still have upside price targets for MAR in the $123+ area.

Bottom line: Stay long MAR and add on strength using a sell stop below $95.

Full disclosure: I frequently stay at Marriott, have a Marriott Rewards credit card and I am a member of their vacation club (VAC).

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