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- 1 Airbnb stock price closed at $109.93 with an increase of +2.37% during the last trading session.
- 2 The year to date return of Airbnb is 25.80%.
- 3 ABNB price trades below 20,50,100 and 200-day EMAs.
After the release of the Quarter 1 earnings report, ABNB stock saw a decline of approximately 10%. The stock price is down 4.37% in the current month. Airbnb stock was highly bullish during the start of 2023.
The price began to rise from the low of $82 and formed a high at $144.63 on February 16. The price did not sustain the move and bears entered the market to push price downwards. Currently, ABNB price has formed support at $105 level and received rejection from $112 on 18 May. The earning report had an adverse effect on the price which caused a sudden downfall in the price.
There is a high probability that the price might fill the price gap in upcoming days as soon as it breaks above the recent resistance of $112 level. Abnb price is currently above the $100 psychological level and if the current support breaks, price can form support at $100.
Abnb price is down roughly 25% from the yearly highs and once it shatters the resistance level of $128, there is a clean move for it to retest the yearly highs. Although, the analysts have dropped the price target from $144 to$135 for the current year. While the investment banking firm still believes in Airbnb’s bullish rally and have kept their price target between $140 to $144.
AirBNB’s Quarter 1 Report
Airbnb reported earnings of 18 cents per share beating the estimates of Zack consensus by 80%. The revenue is less than the previous quarter so is the net income but still higher than the revenue reported in the first quarter of 2022. The price to sales ratio has also declined for Airbnb. In 2020, the P/S ratio was 26.04 and in 2022, the P/S ratio declined to 6.92 indicating increase in revenue over the years.
Will ABNB Price Fill the Price Gap?
Recently, ABNB price touched the lower band of bollinger and began to rise but the move was halted by the resistance level of $112. The previous candle has closed bullish rising toward the 20-day SMA of bollinger.
Even after the fall, the chaikin money flow score is above 0 mark and is at 0.05 indicating price still has strength left to overcome above the immediate resistance. RSI traded at 44.89 suggesting that price is in neutral territory and might turn bullish after it crosses the 60 mark.
Conclusion
The market structure and price action for AirBNB has turned bearish after rejecting the $144.63 level. For price to regain bullish momentum it needs to rise above the major EMAs.
The technical parameters suggest that price might consolidate in the current region before making any sort of move. Traders should wait for proper confirmation before looking for bids.
Technical levels
Major support: $100 and $105
Major resistance: $112 and $128
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
