We're getting ready to head into vacation season, and HomeAway (AWAY) is getting a bump today on the news that Kayak, owned by Priceline (PCLN), will display a few hundred thousand of AWAY's listings. That's enough to give the stock a pop today.
One thing that is worthy of note here is AWAY won't be part of this vacation season. The listings aren't expected to hit Kayak's site until the end of the year. Still, this is a plus for the Austin-based company and has the charts jumping this morning.
The big plus for AWAY here is the impact today's pop has on the daily chart. Back in late April, AWAY left a nasty gap on the chart. Bulls weren't pleased with the quarterly report and punished the stock. With today's push higher, bulls could have a chance to come alive as momentum players may line up over the next few days to play the gap fill pattern on the cart. The previous resistance just above $28.50 should become solid support if any material move higher is going to develop.
I see one of two scenarios playing out here for buyers. First, the stock gets rejected from today's high and pulls back, but only to $29. From there, the stock puts together a steppingstone path to fill the gap. The second scenario is one where the stock follows through tomorrow and the morning high from today's action because of the new support level. I'm unsure of how we play out, so I started a half-size position today and will watch the action tomorrow for my second add target on the long side, which will either be at $29 or $30. The reason I am not waiting until tomorrow is the push on the RSI (top of the chart) is over 50, while the slow stochastics and force index (bottom of the chart, respectively) look ready to also cross over in bullish fashion.
As one might suspect, the weekly chart isn't so pretty, but all hope is not lost. We don't have the gaps, but the strength of the push today is evident on the weekly chart. The last bar is only today's action, and it has broken away from what could have been a bearish flag formation.
The importance of $29 is more evident on this weekly chart. If price can hold $29, then we should see this RSI hold over 50 and the MACD remain in its current bullish crossover. While the results are mixed when these two occur simultaneously, the winning side has been very strong while the losing side has just meandered in a pretty tight range for four to six weeks; therefore, if we don't get a move higher during June, it will be time to bail on this one based on a time stop.
This one looks like it has a nice, clear path to move up, up and away, but this week will be very important to that thesis. AWAY is worth watching closely.