In rapid-fire fashion Jim Cramer fields questions about stocks during the Lightning Round segment of his Mad Money program. On Tuesday evening one caller asked about Marriott International Inc. (MAR) . "I think this one can go a little lower," was Cramer's response.
Let's check out the charts and indicators of MAR.
In the daily bar chart of MAR, below, we can see that prices have made some dramatic swings this year. MAR quickly sank from around $150 per share to just $50 in a matter of a few weeks before checking out at 10 a.m. Prices recovered into early June and touched the underside of the declining 200-day moving average line. MAR is above the rising 50-day moving average line but pulling back from the 200-day line.
Trading volume has been active since late February. The On-Balance-Volume (OBV) line has improved from its early April low and tells us that buyers of MAR have been more aggressive than the sellers. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory but has narrowed recently and could cross to a take profits sell signal in the days ahead.
In the weekly bar chart of MAR, below, we can see that this year's price rebound stopped (so far) at the underside of the declining 40-week moving average line. The $130 area also represents the bottom end of an area of potential resistance.
The weekly OBV line shows up-and-down movement from the March low, which tells us that more aggressive buying is going on but it is more like two steps forward and one step backward. The MACD oscillator just crossed to the upside from below the zero line for a weekly cover shorts signal.
In this Point and Figure chart of MAR, below, we used daily price data. The chart shows two features. First, we can see a potential upside price target of $177. Second, we can see that support (volume by price data) develops around $95.50.
Bottom-line strategy: Traders could look to go long MAR or add to longs in the $95 area risking a close below $88.
