Marriott International Stock: Now's Not the Time to Check In

Shares could work lower as coronavirus fears spread.

On Fridays during the earnings season, Jim Cramer often looks ahead to the coming week and highlights a number of stocks during his Mad Money program. As an example, this Wednesday, we will hear from Marriott International Inc. (MAR) . Cramer cautioned against owning MAR because of the company's exposure to China. 

Let's check out the charts. 

In the daily bar chart of MAR, below, we can see that prices were weak on Friday and have slumped sharply Monday to test the slightly rising 200-day moving average line. Prices are trying to stabilize around the $135 area. If support fails to develops around $135 we are likely to see a deeper decline in the weeks ahead.

The daily On-Balance-Volume (OBV) has been stalled since late December and the Moving Average Convergence Divergence (MACD) oscillator has been hugging the zero line recently. An outright sell signal is possible soon. 

 

In the weekly bar chart of MAR, below, we can imagine that prices are testing the slightly rising 40-week moving average line. The weekly OBV line peaked in December and the MACD oscillator is relatively weak. 

 

 

 

In this daily Point and Figure chart of MAR, below, we can see a potential downside price target in the $119 area. 

 

 

Bottom-line strategy: As investors and traders review their holdings to see which ones could be or are vulnerable to the effects of the coronavirus, we suspect that sellers could become more aggressive with MAR. Avoid the long side for now.

 

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