Airbnb, Inc. engages in the management and operation of an online marketplace. Its marketplace model connects hosts and guests online or through mobile devices to book spaces.
Take a look at the 1-year chart of Airbnb (NASDAQ: ABNB) below with added notations…
Chart of ABNB provided by TradingView
ABNB has a major level of support at $130 (green) that formed last year. The stock looks like it may be making its way back down to that level again, and another bounce could occur. However, if the support were to break, lower prices will likely follow for ABNB.
The Tale of the Tape: ABNB has key support at $130. A trader could enter a long position at or around $130 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!
Christian Tharp, CMT
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