China Lodging Group Ltd (HTHT), one of the stocks we analyzed in Tuesday's Daily Market Commentary webinar, released earnings on Monday, May 14 after the market close. The report exceeded expectations, giving the stock enough bullish momentum to soar to a new 52-week high, surpassing the previous high established on January 19 this year.

Stock Breaks Resistance

China Lodging has been able to increase its average daily rate (ADR) for its rooms both by adding more mid-scale and upscale hotels to its current mix of hotels and by charging more for its hotel rooms. Earnings per share were reported at $0.28 and revenue at $333.4 million over the first quarter of 2018. The news could bode very well for related Chinese travel companies like Ctrip.com International (CTRP), and GreenTree Hospitality Group (GHG).

Based on the support and resistance levels that the stock has been interacting with during its long-term uptrend, China Lodging could have plenty of room to run before hitting its up-trending resistance level. Climbing up toward $200 during the second half of 2018 is now a much stronger possibility in the aftermath of this week's strong earnings.