Airbnb's Stock Price Is Starting To Be Pinched Between Support And Resistance

Airbnb Inc. ABNB shares are trading higher Friday after the company reported better-than-expected second-quarter financial results.

Earnings came in at a loss of 11 cents per share, beating the estimate calling for a loss of 48 cents per share. Sales revenue came in at $1.33 billion, beating the estimate of $1.23 billion.

Airbnb was down 1.6% at $148.60 at last check.

Airbnb Daily Chart Analysis

• The stock is trading in what technical traders call a descending triangle pattern, and may see a break of support or resistance in the coming weeks.
• The stock trades above the 50-day moving average (green), indicating the stock is likely facing a period of bearish sentiment.
• The 50-day moving average may hold as a potential area of resistance in the future.
• The $130 price level has held as support multiple times and may continue to in the future. The stock is building lower highs that are heading toward the support where the price will be pinched.
• The Relative Strength Index (RSI) has been moving up since last week and pushed above the 50 mark. The RSI now sits at 55, meaning there are more buyers in the stock than sellers.

What’s Next For Airbnb?

Bullish traders are looking to see the stock hold above support and eventually break the lower high trendline. This could cause the trend to change and for the stock to see a push higher.

Bearish traders would like to see the stock fall below the $130 support level and begin to hold it as resistance. This could cause the stock to see a strong bearish push following.

Photo: Karsten Winegeart on Unsplash