Airbnb (ABND) is scheduled to report their latest quarterly figures to shareholders and analysts this Tuesday evening after the close of trading. The company operates a platform that enables hosts to offer stays and experiences to guests worldwide. Let's check out the charts to see if this is a place for buyers of the stock to stay.
In this daily bar chart of ABNB, below, we can see that prices have been trying to bottom the past three months. Prices made a big decline from the November zenith to the early July nadir. Prices have recovered to close above the bottoming 50-day moving average line. Trading volume soared higher in late June in a "throw in the towel" decline.
The On-Balance-Volume (OBV) line made a low in early July and now shows some improvement and the return of more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is back to the zero line and poised for an outright buy signal.
In this weekly Japanese candlestick chart of ABNB, below, we can see a harami pattern in early July to mark a price low. The subsequent white real bodies (bullish) confirm the reversal.
The weekly OBV line shows some improvement in July. The MACD oscillator is poised to cross to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of ABNB, below, we can see a potential upside price target in the $144 area.
In this weekly Point and Figure chart of ABNB, below, we can see a longer-term price target in the $157 area.
Bottom line strategy: We were bearish on ABNB in our May 4 review and wrote that "In the near-term ABNB could bounce but the charts and indicators suggest more weakness is possible."
Prices have stopped short of the $73 Point and Figure target. I have no special knowledge of what ABNB will tell shareholders this evening but the charts suggest more sideways price action is likely even if there are further short-term gains.
