Since the day of its IPO (December 16th, 2016), the Trivago stock (NASDAQ: TRVG) has been on a roller coaster ride. Initially, it accelerated in the first half of 2017 and after that it sold off significantly. That slide even led the stock to a fall below its initial offering price, which was around 11.20 dollars. On the last trading day of May this year, TRVG reached its all-time low, at 3.37, which is around one third of the initial opening price. At the end of June, we saw the price breaking above its medium-term downside resistance line taken from the high of November 6th, 2018. No, the stock is balancing above a short-term tentative upside line drawn from the low of May 31st. Even though overall, TRVG looks quite like a beaten stock, from the short-term perspective, there could be a chance to see it climbing slightly higher. This is why for now, we will stay cautiously-bullish.
A strong push further up and a break above the 4.26 barrier, marked by the high of July 1st, could clear the path to slightly higher areas. This is when we will target the highest point of June, at 4.54. We may see another hold-up around there, or even a small correction back down. But as long as the share price remains above the aforementioned short-term upside support line, we will continue targeting the upside. If the buyers, once again manage to lift the stock higher and they are able to bring it above the 4.54 obstacle, this might send TRVG to the 4.91 level, marked by the high of April 30th, which also coincides with the 200-day EMA.
It looks like the RSI and the MACD could be in support of the above-discussed scenario. The RSI is back above 50 and points higher. The MACD is also back above zero and its trigger line but is currently somewhat flat.
Alternatively, a drop below all of the previously-mentioned lines (the downside and the upside), could spook potential new investors from jumping into the stock at this time, as the move may increase TRVG’s chances of drifting slightly lower. We will then examine the 3.62 hurdle, as the next possible support obstacle, a break of which could open the door to the 3.37 level. As we mentioned above, that level is the all-time low for the stock.
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