Marriott Vacations Worldwide Corp. (VAC) has been under selling pressure from back in early February and the sell off is not done yet. Jim Cramer talked about VAC during the Lightning Round last night. Full disclosure: I do not own a time share with Marriott but my wife and I do own Vacation Club or Destination points. Lot's of beautiful properties. Let's skip the sales presentation and take a look at the charts and indicators.
In this daily bar chart of VAC, below, we can see how the eight-month decline has unfolded. Prices were holding around $110 in June and September but prices broke to new lows this month. VAC is below the declining 50-day moving average line and the declining 200-day line. The daily On-Balance-Volume (OBV) line has been sliding lower from early March and tells us that sellers of VAC have been more aggressive for months. In the lower panel is the 12-day price momentum study which does not yet show a bullish divergence. In other words the decline has not slowed down yet from investor buying.
In this weekly bar chart of VAC, below, we can see that prices have been below the declining 40-week moving average line for a number of months. The weekly OBV line is very weak and suggests more price weakness ahead. The weekly MACD oscillator turned down to a fresh outright sell signal.
In this Point and Figure chart of VAC, below, a downside price target of $90.05 is being projected.
Bottom line strategy: VAC is extended on the downside and could bounce a bit but the downtrend has been in force for a while and further declines to next support in the $90 area are likely.