Airbnb's Stock Is Headed North: A Technical Analysis

Airbnb Inc ABNB, a company reliant on travel, went public Dec. 10 in the middle of a pandemic. That didn’t stop traders and investors piling in to drive its share price up 50% over the following two months.

On Thursday, after the market closed, Airbnb printed its first-quarter 2021 earnings results and posted a surprise beat. Mass vaccinations have allowed travel to reopen and Airbnb’s revenue increased 5% over the fourth quarter of 2020. The company reported a loss of 1.95 per share and revenue of $886.9 million compared to an estimate of $714.4 million.

The stock has been in desperate need of some positive news after losing 37% of its value over the past three months and on Friday morning it looked as if things might turn around.

The Airbnb Chart: After reaching an all-time high of $219.94 on Feb. 11, Airbnb’s stock fell into a long consolidation phase that turned into a downtrend after it lost the eight-day and 21-day exponential moving averages (EMAs) at the beginning of May. On Friday, Airbnb’s stock bounced up from resistance near the $130 mark after big bullish volume entered.

The eight-day EMA is trending below the 21-day EMA but Airbnb’s bounce has put it trading just 3% below the eight-day EMA and if the volume is sustained it could recapture it, putting the stock in a better position. The relative strength (RSI) index is still in oversold territory at about 27% which indicates the bounce will continue until at least the RSI reaches 30%.

See Also: 5 Things For Airbnb Stock Investors To Watch In Q1 Report

Bulls want to a further move north on momentum and for Airbnb’s stock to recapture the eight-day EMA and its next resistance level at $150.99. If the stock could regain that level as support, it has room to move up towards $161.

Bears want to see bullish volume leave the stock and for bearish volume to drop Airbnb below support at $130. If the stock were to lose that level it could trade down toward its all-time low at $121.50

ABNB Price Action: Airbnb was trading up 3.8% to $140.93.

Photo: Courtesy of Airbnb Inc.