As you know, Marriott has been one of our favourite stocks and for very good reason.
Depending on what level you breakout point was (lets use the last reference of $50), price has broken out and move into a linear trend then continued to pass the next figure of $60 and we were then expecting the next level of $70 or there abouts to be targeted. On yesterdays session price closed at exactly $70.
What will happen next?
Trend traders do not predict what price will or will not do but what we do know is if price pulls back, we want to compound again. This trade is full of compounds and when our last compound fails, we can assume the trend has come to an end (at least near term). Read more on this from @AnneTrader newsletter To Win You Must Lose.
The eSignal MAR chart below shows price action across monthly (top left), weekly (top right) and daily (bottom) time frames. The 50 moving average has done well as a support zone so we should expect for price to stay above this level. A breakdown below the 50 moving average may lead to a further decline and we will want to be out of this stock until a new breakout occurs. The 50 and 200 moving averages act as good support and resistance levels so a break of these are can provide a different trading approach.
The angle and separation of the two moving averages shows we have had good momentum.
Good trend trading…