Hotelier Marriott International (MAR) reported Q1 numbers this morning and they beat their earnings estimate but missed on revenue by $150 million. MAR is trading lower as traders seem disappointed. Let's see what the charts and indicators have to tell us this morning.
In this daily bar chart of MAR, below, we can see how prices have worked lower this month after stalling around $140. MAR is currently testing the peaking 50-day moving average line but remains above the bottoming 200-day line. Trading volume looks like it has slowed from early March despite prices moving higher. Decreasing volume on an advance is not what analysts like to see.
The daily On-Balance-Volume (OBV) line improved in April but looks like it is turning lower in May which points to more aggressive selling.
The 12-day price momentum study shows a lower high in May versus April even though prices made a higher high. This is a bearish divergence and a technical negative as it tells us that the pace of the rally slowed ahead of the price peak.
In this weekly bar chart of MAR, below, we can see that prices are probably making a second, but lower, peak than the one seen in early 2018.
Prices are above the mostly flat 40-week moving average line.
The weekly OBV line is positive but the 12-week price momentum study in the lower panel shows that momentum was slowing in recent weeks.
In this Point and Figure chart of MAR, below, we can see that prices are in a down column of "O's" but the software is still projecting an upside price target of $173.
Bottom line strategy: MAR has been on the defensive this month and a retest of potential support (former resistance) in the $125-$120 area is expected. If the $120 level is broken a deeper decline is possible. I would stand aside for now.