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CIty Lodge Hotels

April 17, 2024
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Josh Viljoen
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Josh Viljoen

Technical Analysis of CLH

 

When taking a look at the price chart of City Lodge Hotels on a daily timeframe we can see the share price was in a downtrend from October 2021 to October 2022. This downtrend bottomed out at around R3.70 and the share price has since seen substantial recovery to above R5 as travel restrictions have eased any many tourists have flocked to South Africa for the festive season improving the occupancy levels seen in the group's hotels. 

The share price has since broken through the trend line marking the end of the down trend that lasted 12 months. The break in the trend line was further confirmed with the share price finally pushing through the previous level of resistance at R4.60 shown by the blue rectangle in chart 1. 

When narrowing down to the short term time frame shown in chart 2 (4 hour chart) we can seen that the recovery in share price has started to slow down and there has been a period of consolidation with R5.20 acting as the next level of resistance. Should the price manage to break and close above R5.20 another rally could be in store. My short term price target on City Lodge is currently R6 a share based on the technicals of the price chart.


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