China Lodging Group (HTHT) is primed for downside action. The only issue is, will the stock really achieve the conservative downside target of $59.24 or –52.72%?
We can say with a high level of confidence that the $92.27 level is a certainty. While it is normal for a stock price to retrench –50% or more after a parabolic rise, there are potentially outside sources to mute the downside reaction. In spite of any effort to hold the stock up market realities will set in and bring the stock price close to the conservative downside target.