Ashford Hospitality's Stock Breaks Through Resistance: What's Next?

Ashford Hospitality Trust Inc. (NYSE:AHT) is trading higher Friday morning as retail traders have been able to continue to push the stock up.

The stock is a favorite among many internet groups and popular on social media as well, likely the reason the stock has been moving in recent days. Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper-scale, full-service hotels.

Ashford Hospitality Trust was up 8.6% at $5.56 at last check.

Ashford Hospitality Trust Daily Chart Analysis:

• Shares are trading in a sideways channel and look to have broken out of resistance.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is most likely bullish.
• Each of these moving averages may act as support in the future.

Key Levels To Watch:

• Shares have moved higher throughout the week, breaking through a previous resistance.
• The $4.50 level is an area where the stock has previously had trouble moving higher, but as the price broke above this level it may now hold as resistance.
• The $2.50 level is an area where the stock has struggled to cross above, a potential place of support in the future.

What’s Next?

Bullish technical traders would like to see the stock consolidate for a time after seeing a big run-up this week. Following consolidation, the stock may be ready to make another move up.

Bearish technical traders would like to see the stock fall back below the $2.50 level. Consolidation below this level and the stock could see a further downward push.