Fairlead Strategies Idea Generator
New Short Idea
Idea of the Week
Within the mid-cap complex, one industry group that appears positioned unfavorably relative to most others is hotels & resorts, with a fresh breakdown in the group’s relative strength ratio versus the S&P 500 Index. We sourced this group for a new short idea today.
We’re excited to offer this week’s report to free subscribers as a free sample! If you found this interesting, consider upgrading to a paid membership to receive one carefully crafted idea every week.
For this week’s short idea, we have chosen Hyatt Hotels Corporation (H), a mid-cap lodging company:
Hyatt has been in a consolidation phase since February 2024. Currently, it is testing its 12-month moving average. With a monthly overbought downturn and the monthly MACD pinched towards a ‘sell’ signal, the sideways price action has the potential to give way to a prolonged downdraft.
On the weekly chart, pictured below, our indicators reflect downside momentum. The stochastics have rolled over from overbought territory. Additionally, the weekly MACD flashed a ‘sell’ signal this week, reinforcing the bearish indications on the long-term chart.
Resistance is located at the March 2024 high of approximately $161, which could be used as a stop-loss level for this position. The long-term support zone around $134 provides a downside target for Hyatt.
Chart & Levels
Hyatt Hotels Corporation (H, $152.17): Weekly Bar Chart + 10- & 40-week MAs + Cloud Model + Stochastic Oscillator + MACD Indicator w/Histogram
Target: $134
Stop-Loss*: $161
* Our stop-loss discipline requires two consecutive daily closes above/below the indicated level, unless stated otherwise.
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