During the fast paced Lightning Round in Friday night's Mad Money program, our own Jim Cramer noted that people are worried about the business cycle, otherwise, (Marriott) was doing a great job. As a frequent guest at their many hotels I would say that Marriott International Inc. (MAR) is doing a fine job, in my opinion. But my opinion probably doesn't count for much so let's look at the charts and indicators of MAR to wee what a broader audience thinks.
In this daily bar chart of MAR, below, we can see that prices peaked in late January and has traded lower since then. Prices are below the declining 50-day moving average line and below the now declining 200-day line. The daily On-Balance-Volume (OBV) line was neutral for much of the year but it has broken to the downside this month and signals a shift to more aggressive selling. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line in an outright sell mode.
In this weekly chart of MAR, below, we can see that prices are below the declining 40-week moving average line. There is some chart support in the $110-$100 area from mid-2017. The weekly OBV line shows a peak in September and the MACD oscillator broke below the zero line in August for an outright sell signal.
In this Point and Figure chart of MAR, below, we can see a possible downside price target of $95.53.
Bottom line strategy: MAR looks like it is getting extended on the downside. This oversold condition might generate a short-covering advance but it is not likely to go very far. A rally failure could be used by experienced traders to go short MAR looking for a decline to around $95.