Tripadvisor Inc (NASDAQ: TRIP)

TripAdvisor, Inc. operates as an online travel company. The company operates through two segments, Hotel and Other. Its travel research platform aggregates reviews and opinions about destinations, accommodations, activities and attractions, and restaurants for consumers to plan their trips, as well as enables to book hotels, vacation rentals, flights, activities and attractions, and restaurants. The company operates TripAdvisor-branded Websites, including tripadvisor.com in the United States; and localized versions of the Website in 47 countries.

Take a look at the 1-year chart of Trip (NASDAQ: TRIP) with the added notations:

1-year chart of Trip (Nasdaq: TRIP)

After the big May to January drop, TRIP started bouncing on top of the $60 support (green) over the following 6 months. Now that the stock appears to be falling back down to that support area again, traders should be able to expect some sort of bounce. However, if the $60 support breaks, lower prices should follow.

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The Tale of the Tape: TRIP has a key area of support at $60. A trader could enter a long position at $60 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT

Follow me on Twitter: @cmtstockcoach