Marriott Vacations Worldwide (VAC) turned lower in February and the selloff is probably far from over if my analysis of the charts is correct. Let's put those vacation plans on hold for now and check out the charts and indicators of the seller of vacation ownership products.
In this daily bar chart of VAC, below, I can see that prices are trading below the declining 50-day moving average line and below the declining 200-day moving average line. The trading volume has been increasing the past four months, telling me that traders are voting with their feet and selling. The On-Balance-Volume (OBV) line has been in a clear decline since February as sellers of VAC have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is bearish but trying to generate a cover shorts buy signal.
In this weekly Japanese candlestick chart of VAC, below, I can see a downtrend in place from way back in early 2021. The price weakness on the daily chart above is not new. VAC trades below the bearish 40-week moving average line. The weekly OBV line has been in a long decline and confirms the price weakness. The MACD oscillator is bearish.
In this daily Point and Figure chart of VAC, below, I can see a downside price target in the $101 area.
In this weekly Point and Figure chart of VAC, below, I can see a price target in the $85 area is projected.
Bottom line strategy: Is the timeshare industry in trouble? I don't know, but I can say that the charts of VAC are bearish. Avoid the long side of VAC
