Marriott Vacations (VAC) has had a great run since 2012, according to the chart above, traveling to over $90 from under $20. Notice how every dip to the rising 40-week (a.k.a. 200-day) simple moving average was a buying opportunity.
Without any top formation developing, VAC moved sharply lower in the latter part of July and continued lower into October. The On-Balance-Volume (OBV) line led and turned soft at the beginning of July. There is a bit of a bullish divergence between the lower prices and higher momentum readings the past two months, but it hasn't resulted in base building, let alone a rally. Unless prices stabilize and start to move higher on increased volume, VAC is more likely to grind lower into the next support area in the $60 to $50 area.
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The former name is technically overbought but offers reasons to expect it to grow, while the latter should benefit from the Covid-19 vaccines.
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