Looking at the technical picture on the 4-hour chart of the Booking Holdings Inc. Common stock (NASDAQ: BKNG), it continues to move within a range, which is slightly tilted to the upside and has been in play since the end of December 2018. Inside that formation, the share price started moving closer to the upper bound of it, while trading above a medium-term upside support line taken from the low of May 31st. If BKNG breaks above the upper side of that range, this may eventually attract more investors into the game. That said, until that happens, we will remain neutral and continue observing the price action.
As mentioned above, in order to examine higher levels, we need to see a break of the 1969 barrier, marked by the highest point of July, and a move above the upper bound of the previously-discussed range. This way, the stock would confirm a forthcoming higher high and we could see the price rising slightly above the 2000 zone, towards the 2016 hurdle, which is the highest point of November 2018. BKNG might initially stall around there, or even correct back down a bit. But if the stock remains above the upper side of that range, more investors could join in and lift the price back to the 2016 area, a break of which could set the stage for a test of the 2033 level, which is the low of August 8th, 2018.
Our oscillators, the RSI and the MACD, are somewhat in support of the above-discussed scenario. Even though the RSI is not pointing higher right now, the indicator is still above 50, which could be seen as a positive. The MACD is below zero and its trigger line, while pointing slightly to the upside.
Alternatively, if the stock falls below one of its key support levels, at 1885, this could make a few investors worry, as such a move might bring the share price closer to the support zone between the 1826 and 1839 hurdles, marked by the high of August 7th and the low of August 2nd respectively. BKNG could rebound back up a bit from there, but if there are still not a lot of buyers, the stock might fall below the 1826 area and target the previously-mentioned upside line, which may provide additional support.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2019 JFD Group Ltd.