Bears Are Out To Get AIRBNB

by at FXTM.
Tran Dai Phat
Tran Dai Phat

AIRBNB (NASDAQ: ABNB) on the 4-Hour Chart has been following an upward path since 17 May 2021, having found support at the $130.14.

Price Analysis

The formation of the Japanese candlestick reversal pattern known as Long White Body signalled the very beginning of the upward bias.

The attractive price enticed investors who entered the market with long positions and as a result they have pulled ABNB to higher levels, following a pattern of successively higher tops and higher bottoms.

Subsequently, ABNB formed an Evening Star pattern near the resistance level of $157.37, which hinted at the end of the rally and the potential beginning of a decline.

Upon applying Technical analysis on the price chart, one can see that the last Japanese candlestick of Evening Star pattern managed to close below the 10-period Exponential Moving Average line, a fact that also points to the downward direction and the bearish bias in the market.

Relative Strength Index Oscillator

Additionally, the Relative Strength Index Oscillator registers values below the fifty line, which also confirm bears’ presence in the market.

Both technical indicators, as well as the Japanese candlestick reversal pattern, are in agreement in terms of the stock’s downward bias.

Furthermore, the ABNB price is currently trading below the upward trend line, which also implies that supply is greater than demand.

Price Targets

Applying the Fibonacci Retracement tool to the low price of the Bearish Japanese candlestick at the price of $146.30 and dragging it up to the high price of the pattern at the price of $150.25, three price targets were calculated:

  • The first price target is estimated at $142.35 (200%),
  • The second price target is seen at $138.40 (300%),
  • The third price target is projected at $134.45 (400%).

At the time of writing, the first price target has been breached. Its current price is 7.02% below last week’s close, after a sharp decline in price during a period of heavy selling.

One would expect that traders will be closely watching the reaction of the market at the historical key support level at $130.14.

Of course, it remains to be seen whether the crowd psychology as well as the bears pressure will manage to maintain the control of the market and push Airbnb to lower grounds.

airbnb 4 hourly 16 jul 21

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