Marriott International Inc. (MAR) reported second-quarter results here on Monday morning that fell short of analyst estimates. Looking ahead, Marriott executives are fairly positive and pointing to signs of demand returning to the lodging market.
Let's check out the charts of MAR to see if we should be positive about the share price.
In this daily bar chart of MAR, below, we can see that prices made a sharp 2/3 retracement in February and March. MAR recovered into early June but failed at the underside of the declining 200-day moving average line. Prices largely have traded sideways the past four months. MAR closed above the 50-day moving average line on Friday. The slope of the 200-day moving average line is still negative and intersects up around $110. The On-Balance-Volume (OBV) line made its low in early April and shows some uneven movement to the upside. The Moving Average Convergence Divergence (MACD) oscillator is just below the zero line and could cross above the line if prices strengthen in the short run.
In this weekly bar chart of MAR, below, we see a neutral picture. Prices are trading sideways below the declining 40-week moving average line. The weekly OBV line is stable, which is better than declining. The MACD oscillator is below the zero line but pointed up since a cover shorts buy signal in May.
In this daily Point and Figure chart of MAR, below, we can see that the charting software is projecting an upside price target in the $117 area.
Bottom line strategy: Aggressive traders could use a soft first hour of trading to go long MAR. Risk a close below $80 for now. Add to longs on strength and look for the $117 area as your first price target.