Marriott Intl., Inc. (MAR) has broken below the rising 200-day moving average line and below its February and April lows. It looks like room rates may hold steady but the price of the stock could be under selling pressure the rest of the summer. Let's get an early check-in with the charts and indicators.
In this daily bar chart of MAR, below, we can see how rallies have failed over the past seven months. The shorter 50-day moving average line turned flat in April and May, and the slope turned bearish in late June. Prices slipped lower in the second half of June and fell below the rising 200-day moving average line at the same time the February and April lows were broken.
Reading the chart from right to left or from the most recent data to older information, we can see that there is only minor chart support below $125 until you reach the $105-$100 area. Looking at the volume pattern right below the price chart we can see that the volume of trading peaked back in November and has slowly diminished to early June. Diminishing volume in a sideways trading range market is an indication that traders are finding better more profitable opportunities elsewhere.
The daily On-Balance-Volume (OBV) line shows a peak in March followed by a very flat line. In June the OBV line starts to turn down suggesting that sellers of MAR had turned more aggressive with heavier trading volume being transacted on days when MAR closed lower.
The trend-following Moving Average Convergence Divergence (MACD) oscillator fell below the zero line last month for an outright sell signal.
In this weekly bar chart of MAR, below, we have a weak picture. Prices have broken chart support at $130 and closed below the rising 40-week moving average line.
The weekly OBV line has been in a narrow sideways pattern all year and is not foreshadowing higher prices ahead.
The weekly MACD oscillator turned down to a take profits sell signal in February and is still in a bearish mode.
In this Point and Figure chart of MAR, below, we can see a distribution pattern with a breakdown at $127.44 and a potential downside price target of $107.27.
Bottom line: MAR is up around 10-fold from its 2008-2009 nadir so a profit-taking reaction/correction should not be a shock. Traders and investors should stand aside from the long side of MAR and wait for a better buying opportunity in the months ahead.