Airbnb Inc. (NASDAQ: ABNB) seems to be getting ready for a price bump in the short-term as per the latest charts. Airbnb, Inc. is an American company that operates an online marketplace for lodging, primarily homestays for vacation rentals, and tourism activities.
Bullish Move – Chart Indications
#1 Downtrend Channel Breakout: As you can see from the daily chart, the stock has been trading within a downtrend channel during the past several months. This is marked in orange color. The stock had typically taken support at the bottom of the channel before bouncing back. The stock has currently broken out of the downtrend channel, indicating possible bullishness.
ABNB – Daily Chart
#2 Price above MAs: The stock is currently trading above its 50-day as well as 200-day SMA. This shows the strength of the current upmove.
#3 Bullish MACD: The MACD line (blue color) is currently above the MACD signal line (orange color) in the daily chart. This indicates a possible bullish bias.
#4 Bullish ADX and DI: The ADX indicator shows bullishness because the ADX line and (+DI) line are above the (-DI) line, and ADX has started rising from below both (+DI) and (-DI). These point to a possible upmove in the near-term.
#5 Bullish Stoch: The %K line is above the %D line of the stochastic in the daily chart, indicating possible bullishness.
#6 Above Support Area: The weekly chart shows that the stock is currently trading above a support area. This is marked as a pink color dotted line. This is a possible bullish indication. The stock is also trading above its 50-week SMA, indicating that the bulls are now gaining control.
ABNB – Weekly Chart
#7 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.
#8 Bullish ADX and DI: In the weekly chart as well, the ADX indicator shows bullishness because the (+DI) line is above the (-DI) line, and the ADX line has started rising from below both (+DI) and (-DI). This is a possible bullish indication.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for ABNB is above $188.00.
TP: Our target prices are $197 and $203 in the next 3 to 6 months.
SL: To limit risk, place a stop loss below $183.00. Note that the stop loss is on a closing basis.
Our target potential upside is 5% to 8% in the next 3-6 months.
For a risk of $5.00, our first target reward is $9.00 and the second target reward is $15.00. This is a nearly 1:2 and 1:3 risk-reward trade.
In other words, this trade offers 2x to 3x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the downtrend channel breakout level with high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
— Tara
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