Choice Hotels International is one of the largest hotel chains in the world. It has close to 600,000 hotel rooms in the world. Choice Hotels operates well-known brands like Comfort Suites, Comfort Inn, Quality Inn, Sleep Inn, Clarion Hotels, and Cambria Hotels. The company operates on a franchise model that allows it to scale up quickly without high capital requirements. Choice Hotels experienced strong demand before the pandemic and its brand strength and scale should allow it to perform strongly once a vaccine is out. The long-term prospects, therefore, look bright.
The long term monthly chart for Choice Hotels shows a steady uptrend that peaked in December 2019. The first three months of 2020 saw the price fall by more than 50%. The stock went below the $84 support level and briefly below the bottom of the long-term trend as well. Since April, the stock has been in an uptrend. September saw a pullback. However, the stock seems to have respected the $84 support level and is back up. The likely price target is $100. A stop loss can be placed below the $84 support level, somewhere near $82 or $80.
Positions taken today at $92.24 with stop loss at $70, 24% below. Short to medium term traders Take profit point at $112 giving a profit about 20%
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.