The TripAdvisor Chart Shows A Good Pattern Gone Bad

Summary:

• TripAdvisor Inc TRIP tanked 11% on Wednesday after the company posted Q1 sales that missed Wall Street expectations.
• This was ultimately a good pattern that went bad, with a breakdown that suggests lower prices in the coming months.

TripAdvisor Stock Weekly Chart

The company reported earnings per share of $0.36 and total revenue of $376 million in the first quarter, compared to analyst estimates of $0.31 and $387 million.

CEO Stephen Kaufer stayed focused on the positive, “We remain on track to deliver double-digit EBITDA growth this year. We're leveraging our unique assets and investing in key areas to drive long-term profitable growth.”

However, our analysis focuses on the stock’s market cycles. the stock has started the declining phase of its current minor cycle (the smaller cycle brackets at the bottom of the chart). We expect a bounce to start in the next coming weeks. However, with key cycle support already broken, we expect more downside pressure, with a target of $42 by August.

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