Airbnb Inc. (ABNB) is scheduled to release its third-quarter results after the close of trading here on Tuesday, so let's check into the charts of the online accommodations marketplace to see if we might want to book a stay in its stock.
In this daily bar chart of ABNB, below, we can see that prices have struggled the past 12 months. ABNB made a low in early July and bounced into September before correcting lower. Prices are trading slightly below the declining 50-day moving average line and below the declining 200-day line. Trading volume has been more active since May and the On-Balance-Volume (OBV) line made a low in mid-July followed by an uneven rise. The Moving Average Convergence Divergence (MACD) oscillator is hugging the zero line, which means there is little in the way of trend strength.
In this weekly Japanese candlestick chart of ABNB, below, we see a neutral to weak chart picture. Prices are in a longer-term decline and trade below the declining 40-week moving average line. The weekly OBV line is in a longer-term decline from last November. The candles are not bullish at this point in time. The MACD oscillator is well below the zero line in sell territory.
In this daily Point and Figure chart of ABNB, below, we can see a downside price target in the $106-$105 area.
In this second Point and Figure chart of ABNB, below, we used weekly price data. Here the software is projecting the $72 area.
Bottom line strategy: I have no knowledge of what Airbnb might report to shareholders this evening, but the charts above suggest it will be easy to get a reservation. I would not look to be a buyer just yet.
