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- 1 WH stock price: The share price has risen as a result of certain news, know more in the article below.
- 2 The Stock price is near its resistance level of $73.7, see whether it will come down or rise up.
- 3 The WH stock has been in consolidation since May of last year.
Based in New Jersey, the Hotel management company Wyndham Hotels & Resorts, Inc. (NYSE: WH) franchises and operates hotels. The company operates under two major segments: Hotel Franchising and Hotel Management.
Why is the WH Stock Price Rising?
On Tuesday, Wyndham’s acquisition news started floating in the market which made the WH stock price surge more than 13%. Choice Hotels International plans to acquire Wyndham Hotels & Resorts for $9.8 billion, more than Wyndham’s current valuation. Under the terms of the deal, Wyndham shareholders will receive $90 per share, representing a 30% increase from its previous closing price.
Choice Hotels will acquire Wyndham using cash and stock. Wyndham shareholders will receive $49.5 in cash and 0.324 shares of Choice Hotels stock for each share of Wyndham they own. It is an excellent deal for the shareholders after the WH stock price performance in the past 6 months. Moreover, since the company is getting acquired, we will jump straight into the technical analysis.
Technical Analysis and Prediction of the WH Stock Price
At the press time, the WH stock price has broken a resistance level of $73 after the gap-up opening. Although the stock has broken above this critical resistance level, it has faced significant rejections. It has experienced a range of prices in the past year, with the lowest being $63.6 and the highest being $81.
Currently, the stock’s 50-day exponential moving average price stands at $71.7, while the 150-day exponential moving average price is $73.4. In terms of support and resistance levels, the 2nd supports and resistances are at $58 and $80, respectively. Therefore, the WH stock price will go down towards its immediate resistance level of $65 to fill the liquidity gap.
The WH stock price prediction is bearish as the rejections are likely to lead the stock to its immediate resistance level. On the other hand, the RSI hasn’t reached its oversold level yet and is likely to fall towards its neutral territory of 50.
Conclusion
Wyndham Hotels & Resorts, Inc. (NYSE: WH) franchises and operates hotels. Its stock price started rising after the news of its acquisition came into the market. Choice Hotels International plans to acquire Wyndham Hotels & Resorts for $9.8 billion.
The current stock price is above a resistance level. The price prediction is bearish, looking at the rejection on the current level and liquidity absence below.
Technical Levels
- Support Levels: $65 and $58
- Resistance Levels: $73 and $80
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
