ABNB - watch the hourly chart, and be ready for a great trade
A recent IPO stock, ABNB got off to a high-flying start. However after dropping from the 170's, price could be in a bear flag. On 8 Jan you see a big red candle (white arrow) followed by consolidation.
That drop caused RSI to test 50, and at the end of the week there was another dip and bounce at the 50 line. Look for one of two trade triggers here. If ABNB trades over the high of Friday's last green candle, then trade calls/long as a RSI double bounce off 50 line usually leads to a strong move up. Better yet, set an alert for ABNB to trade over the high of the big red candle or below its low. The latter would result in a puts/short trade and RSI drops below 50.
You can look for day trade opportunities, and this coming move should make for a nice swing trade. While price should head back to 170 or 125 (green and red lines), I am expecting a move to 200 or 100. I do have a bias towards puts, but I will stay patient and wait for the chart to speak to me.
That drop caused RSI to test 50, and at the end of the week there was another dip and bounce at the 50 line. Look for one of two trade triggers here. If ABNB trades over the high of Friday's last green candle, then trade calls/long as a RSI double bounce off 50 line usually leads to a strong move up. Better yet, set an alert for ABNB to trade over the high of the big red candle or below its low. The latter would result in a puts/short trade and RSI drops below 50.
You can look for day trade opportunities, and this coming move should make for a nice swing trade. While price should head back to 170 or 125 (green and red lines), I am expecting a move to 200 or 100. I do have a bias towards puts, but I will stay patient and wait for the chart to speak to me.