The past year has been rough for the travel industry, but more recently these companies’ stocks have been red hot. As shown in the snapshot of our Trend Analyzer below, there are several S&P 500 travel stocks (those in the airlines, cruise, and hotel industries) that are off the chart overbought. Only two names, Las Vegas Sands (LVS) and Wyndham Worldwide (WYND), did not close yesterday at least 2 standard deviations above their 50-DMAs, but even though they did not technically do so, they were very close to joining the rest of their cohorts in extreme overbought territory. Another remarkable aspect of these readings is that just last week some of these stocks were oversold. After more than 20% rallies in the past five days, cruise lines Royal Caribbean (RCL) and Norwegian (NCLH) have gone from oversold levels to deep into overbought territory.
From a charting perspective, in spite of the very overbought conditions, many of these stocks have now broken out above their highs from a few months ago thanks to these recent gains. As shown in the snapshot of our Chart Scanner below, within the past couple of days stocks like Booking Holdings (BKNG), Carnival (CCL), Southwest Airlines (LUV), and Las Vegas Sands (LVS) to name a few have now broken out. Not only have they broken out, but some are even reaching 52-week highs as pre-pandemic levels roll off the chart. In fact, just yesterday, Alaska Air (ALK), Booking Holdings (BKNG), Expedia (EXPE), Hilton (HLT), Southwest (LUV), Las Vegas Sands (LVS), Marriott (MAR), MGM Resorts (MGM), and Wynn Resorts (WYNN) all reached 52-week highs. Click here to view Bespoke’s premium membership options for our best research available.