TripAdvisor, Inc. operates as an online travel company. The company operates in two segments, Hotel and Non-Hotel. Its travel platform aggregates reviews and opinions of members about destinations, accommodations, activities and attractions, and restaurants, which enables users to research and plan their travel experiences, as well as book hotels, flights, cruises, vacation rentals, tours, activities and attractions, and restaurant reservations on its site or mobile app, or on the site or app of travel partner sites.
Take a look at the 1-year chart of TripAdvisor (NASDAQ: TRIP) below with added notations:
After moving higher in May and June, TRIP has moved into a sideways trading range. While in the range, the stock has formed a key resistance level at $60 (red), and a clear $55 support (green). At some point the stock will have to break one of the two levels.
The Tale of the Tape: TRIP is trading within a sideways range. The possible long positions on the stock would be either on a pullback to $55 or on a breakout above $60. The ideal short opportunity would be on a break below $55.
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!
Christian Tharp, CMT