Hyatt Hotels faces a massive wall. Here is my plan.
Look at the chart for Hyatt Hotels Corporation right now.
It is sitting at a very interesting spot. We are looking at a classic technical standoff. The price is pushing right up against a tough ceiling. This is what traders call a major resistance level.
The image provided highlights a clear "Multiple Top" resistance area. You can see how the price has struggled to get past this zone historically. Every time it gets up here sellers step in and push it back down.
But look closer at the recent action. The uptrend is pushing hard against that barrier again. Something has to give soon.
Here is the exciting part of this setup.
We are waiting for a decisive moment. If Hyatt can breaks that $170 resistance with strong volume we enter in a new territory. There is practically no historical resistance left above that price. It is what we call a free rise.
If that breakout happens, a quick 15% to 20% rally over the next few weeks is very realistic.
The momentum from breaking such a long standing barrier would be enormous.
Of course we never trade without a safety net. Education is about managing risk first. If we take the long trade on the breakout we need a plan B.
A stop loss placed around $157 makes a lot of sense here. It sits just below recent structural support levels. If price breaks out but then reverses and drops back below $157 the breakout has likely failed. We take the small, manageable loss and move on.
There is always another option in trading.
You could bet that the resistance holds firm again. The price could reject right here and drop perhaps 10% back down toward the trendline. Both views are valid strategies.
However the risk reward ratio on the bearish bet just is not as attractive right now.
That is why I prefer the breakout play in this specific scenario. It has a built in trigger mechanism. If the price never actually crosses the $170 mark we never enter the trade at all. We simply stay on the sidelines with our cash safe.
It feels like the more manageable risk approach right now. Patience is absolutely key here. Wait for the market to show its hand clearly before you commit yours.
Remember, we only play Aces here ;)
👇 WANT MORE?
🚀 Hit the rocket, read my profile and follow so we can find each other again :)
Look at the chart for Hyatt Hotels Corporation right now.
It is sitting at a very interesting spot. We are looking at a classic technical standoff. The price is pushing right up against a tough ceiling. This is what traders call a major resistance level.
The image provided highlights a clear "Multiple Top" resistance area. You can see how the price has struggled to get past this zone historically. Every time it gets up here sellers step in and push it back down.
But look closer at the recent action. The uptrend is pushing hard against that barrier again. Something has to give soon.
Here is the exciting part of this setup.
We are waiting for a decisive moment. If Hyatt can breaks that $170 resistance with strong volume we enter in a new territory. There is practically no historical resistance left above that price. It is what we call a free rise.
If that breakout happens, a quick 15% to 20% rally over the next few weeks is very realistic.
The momentum from breaking such a long standing barrier would be enormous.
Of course we never trade without a safety net. Education is about managing risk first. If we take the long trade on the breakout we need a plan B.
A stop loss placed around $157 makes a lot of sense here. It sits just below recent structural support levels. If price breaks out but then reverses and drops back below $157 the breakout has likely failed. We take the small, manageable loss and move on.
There is always another option in trading.
You could bet that the resistance holds firm again. The price could reject right here and drop perhaps 10% back down toward the trendline. Both views are valid strategies.
However the risk reward ratio on the bearish bet just is not as attractive right now.
That is why I prefer the breakout play in this specific scenario. It has a built in trigger mechanism. If the price never actually crosses the $170 mark we never enter the trade at all. We simply stay on the sidelines with our cash safe.
It feels like the more manageable risk approach right now. Patience is absolutely key here. Wait for the market to show its hand clearly before you commit yours.
Remember, we only play Aces here ;)
👇 WANT MORE?
🚀 Hit the rocket, read my profile and follow so we can find each other again :)
Most days the market gives you nothing worth playing.
A few times a month it hands you two aces ♠️♦️.
I tell you when that happens & why, after studying more than 8 million patterns across 30 years.
👉topchartpatterns.substack.com/embed
A few times a month it hands you two aces ♠️♦️.
I tell you when that happens & why, after studying more than 8 million patterns across 30 years.
👉topchartpatterns.substack.com/embed
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Most days the market gives you nothing worth playing.
A few times a month it hands you two aces ♠️♦️.
I tell you when that happens & why, after studying more than 8 million patterns across 30 years.
👉topchartpatterns.substack.com/embed
A few times a month it hands you two aces ♠️♦️.
I tell you when that happens & why, after studying more than 8 million patterns across 30 years.
👉topchartpatterns.substack.com/embed
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.