From around mid-July, the Marriott International Inc stock (NASDAQ: MAR) continues to trend lower, trading below a medium-term downside resistance line drawn from the high of July 16th. Last week, the price found good support near the 116.80 zone, from which it rebounded and is now trying to recover some of its losses. That said, as long as MAR stays below the above-mentioned downside line, we will continue aiming lower.
If the stock rises a bit more, but struggles to move above the aforementioned downside line, this move higher might be considered as a temporary correction before another leg of selling. Once again, we will aim for the 116.80 hurdle, a break of which would confirm a forthcoming lower low and we could see MAR moving towards the next potential support zone, at 114.50, marked near the lows of February 8th and 12th. If that area is not able to withhold the slide, its break may open the way to the 111.35 level, which is the high of January 16th.
Our oscillators, the RSI and the MACD, are currently in support of the above-mentioned idea. The RSI is pointing slightly higher, but still sits below 50. The MACD is also pointing a bit to the upside, but remains below zero.
On the other hand, if the previously-discussed downside line fails to keep the price down, its break and a price-rise above the 131.40 barrier, marked by the high of September 19th, could invite more buyers into the game and we could see a push towards higher levels. We will then examine a possible move to the 135.40 hurdle, marked by the highest point of September, which might stall the stock for a bit. We could even see a small correction back down, but if MAR stays above that downside line, we will continue targeting higher areas. Another test of the 135.40 obstacle could force it to surrender and open the door for a further move up, potentially aiming for the 141.70 barrier, which is the high of July 25th.
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