Hotels and Tourism Sector Eyes Growth Amid Bullish Trends
Author
Dipesh
January 23, 2025 – The Hotels and Tourism sector has been drawing attention in recent trading sessions, showcasing signs of recovery and potential for significant growth. Recent chart analysis highlights a bullish reversal in the sector's performance, backed by positive market sentiment and improving fundamentals.
Technical Outlook
The price action indicates a shift from a bearish trend, marked by lower highs (LH) earlier in 2024, to a bullish momentum, as higher highs (HH) and higher lows (HL) emerge. The breakout above a critical resistance zone, previously acting as a ceiling for the price, confirms a Change of Character (CHoCH)—a key indicator for trend reversal. Analysts predict this momentum could propel the price toward the next major resistance levels at 7,398 and 7,800, with optimistic projections even targeting 8,000+.
Volume and Market Sentiment
A notable uptick in trading volume accompanies this rally, suggesting strong institutional and retail interest in the sector. The recent surge aligns with seasonal tourism demand, coupled with increased consumer spending on travel and leisure. Industry insiders attribute this positive trend to the easing of travel restrictions, robust holiday bookings, and new infrastructure developments.
Support and Resistance Zones
The chart reveals key support zones between 6,200 and 6,400, which are expected to hold strong should a pullback occur. Investors are advised to monitor these levels closely for potential re-entry opportunities.
Conversely, the sector faces significant resistance near the 7,400 and 7,800 zones. A decisive breakout beyond these levels could pave the way for further upward momentum, establishing a long-term bullish trajectory.
Sector Fundamentals
The Hotels and Tourism sector has benefited from:
Post-pandemic recovery: Increased global mobility and pent-up travel demand have spurred hotel bookings and occupancy rates.
Investment in infrastructure: Governments and private players have committed to developing tourism infrastructure, boosting growth prospects.
Seasonal demand: The ongoing holiday season provides tailwinds for higher revenue generation.
