Hyatt Hotels H-N (Wednesday’s close US$114.49) built a large bullish technical base in the form of an Inverse Head-and-Shoulders pattern over a period of five years (solid lines). The stock encountered resistance near US$100 in 2022 (dashed line) but pierced above this level earlier this year to signal a breakout from the bullish formation and the start of an uptrend toward higher targets (A).
Hyatt became overbought and was far above the 40-week Moving Average (40wMA) at that time; it started a minor correction toward the Average (B) and now appears ready to resume the uptrend.
Behaviour indicators including the rising 40wMA confirm the bullish status. There is good support near US$100-105; only a sustained decline below this level would be negative.
Point & Figure measurements provide targets of US$125 and US$135. The five-year Inverse Head-and-Shoulders.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com
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Monica Rizk