6Z1 trade ideas
ABNB Descending channelABNB is trading inside a descending channel.
Price is now testing the top and we might see an attempt to break in the next few sessions.
160 level has been extremely hard to break, it already tried twice and failed, causing a big sell.
This level now is likely to break if price makes another try.
Also, we can clearly see an ascending channel forming (red dotted), as long price is riding and forming this channel, we can see highs.
Levels to watch: 156.75 - 160 - 165.20 - 171.60
AirBnB breakout in the worksHello Friends!
AirBnB had a great earnings report and seems to be leading the way in travel. There might be a good trade in the works to break to the upside (wedge breakout) to it’s 1st resistance of $174.52. If it can hold above that level, I think it might have some steam to go after $189.41 and $204.96.
These days good news can flip to bad news overnight, trade with caution.
As always thanks for your follows, likes, and comments. Let’s learn and grow together. Cheers!
*This information and publication is not meant to be, and do not constitute, financial, investment, trading, or other types of advice. Do your own research.
ABNB Strong Earnings but Wrong ValuationABNB net loss was $18.8 million, or 3 cents a share, higher than the loss of 25 cents a share Wall Street analysts were expecting.
Revenue up 70% YoY to $1.51 billion vs $1.45 billion expected.
But i still don`t understand where that 94.879Bil market capitalization comes from.
Since its IPO the company wasn`t profitable and it is still valued at 95Bil. Pure growth speculation.
ABNB may not be able to achieve profitability in the upcoming years.
My speculative price target is lower than its IPO, at $95.
Looking forward to read your opinion about it.
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ABNB- How can they guide higher? They cannot!Inflation has caused households to get squeezed on every front. Vacations are a luxury not a necessity. Consumer is tapped out! $6 a gallon gasoline here in CA. Inflation . Higher interest rates. Rising wages. Labor force shortages. Consumers being squeezed on every front. Something has to give! Same as GAP, NFLX and AMZN evidenced the consumer is cutting back. ABNB is not impervious to the headwinds of the entire economy, they are in the eye of the storm. I say they cannot guide higher. vacations will become fewer when households have to tighten their purse strings in the upcoming recession/ depression.
Airbnb Could Be Planning a Trip NorthLike millions of Americans, Airbnb has been cooped up for a long time. But now the room-sharing stock could be planning a trip north.
The first pattern on today’s chart is the 50-day simple moving average (SMA) climbing toward the 200-day SMA. At its current pace, a “golden cross” could take place within a week. That may suggest that the longer-term trend is turning positive. The 8-day exponential moving average (EMA) has also remained above the 21-day EMA for the last month.
Next is the downward-sloping trendline that’s held ABNB in place since November. Prices are now squeezing between this resistance and the 50- and 200-day SMAs below. Is a breakout coming?
Speaking of a potential breakout, Bollinger band width has narrowed to its tightest reading in three months. Such compression could be followed by price expansion.
That could be especially true when you consider conditions in the travel industry. Delta Air Lines jumped after issuing strong with strong guidance on April 13. (Notice ABNB’s high-volume candle the same day.) Yesterday also featured breakouts in hotel stocks like Marriott and Hilton , which saw heavy call activity on March 29 .
ABNB's earnings are due May 3 – four weeks before Memorial Day kicks off the summer holiday season.
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ABNB - is a breakup imminent?A break of this trendline was attempted in early April which failed but gave way to a higher low. It is showing strength relative to the overall market. Odds of breaking up has increased.
Looking to Long if it breaks above the trendline resistance @ 175.50 with initial stop loss @ 167.5
With market so volatile I would prefer to cut losses fast if trade does not pan out quickly.
If trade goes our way I will scale out partially @ 191 and then 207 (fib extensions of the AB swing up)
Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important!
Airbnb might head into bullish trend Airbnb might head into bullish trend after testing current support levels:
Bearish Indicators:
1. Current support level of 162.56 is a weak support historically
2. Posting of a Higher Low at $162.56
Bullish Indicators:
1. Close to a Piercing Line formation at 162.56
TRADE PLAN A:
1. Look for Green candle formation on Monday
2. Buy between $163 - $167
3. TP1 at $176.53 as the next resistance line (sell 50%)
4. TP2 at $200 based on AB=CD projection
5. Keep adjusting SL along the way to maintain risk appetite of 2%/trade loss
TRADE PLAN B:
1. In case current resistance level of $162.56 is broken, watch for performance at following resistance levels
2. Based on candles formation, buy at $153.21 and follow strategy in Plan A
3. If $153.21 resistance level is broken, consider buying at $143.05 and follow strategy in Plan A
AIRBNB - BULLISH SCENARIOAlthough the Covid-19 pandemic had a major impact on many companies, Airbnb's financial results are more than good.
The San Francisco, California-based company has an average target price of $ 205 based on 36 analysts' ratings.
The current level is a good entry point for a short-term long position with approximately 18% movement towards the first resistance
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