Booking Holdings Inc. (BKNG) was mentioned on "Mad Money" last night. Jim Cramer said he would avoid the stock and favored Expedia Inc. (EXPE) . Let's see how the charts and indicators of BKNG look this morning.
In this daily bar chart of BKNG, below, we can see that BKNG has been in a down trend from March that accelerated last week. The slope of the 50-day moving average line turned negative/bearish in late June, and rallies to the underside of this declining average line have failed. Last week BKNG gapped below the rising 200-day line.
The daily On-Balance-Volume (OBV) line has rolled over from late May and is pointed down, which signals that sellers of BKNG have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has spent much of its time since the end of May below the zero line. The MACD oscillator is bearish now.
In this weekly bar chart of BKNG, below, we can see a bearish setup. BKNG is trading below the cresting 40-week moving average line. The weekly OBV line peaked in June and has weakened, telling us that sellers of BKNG have been more aggressive. The trend-following MACD oscillator is close to crossing the zero line for an outright sell signal.
In this Point and Figure chart of BKNG, below, we can see a large distribution pattern and a breakdown at $1,970. A downside price target of $1,661 is being projected.
Bottom line strategy: BKNG could have an oversold bounce at any time, but the bigger picture suggests that there is more weakness ahead. Look for a possible test of the February and November lows.