Looking at the technical picture of the TripAdvisor stock (NASDAQ: TRIP) on the 4-hour chart, we notice that it has slowly been forming a symmetrical triangle from around the beginning of March. The price is getting closer to the apex and in order to examine a short-term directional move, we need to wait for a break of one of the sides of the pattern first. This is why we will stay neutral for now.
If the share price rises, breaks the upper side of the triangle and pushes above the psychological 20.00-dollar mark, that’s when more buyers may get interested and step in. The stock could travel to the 20.73 hurdle, which is the high of March 26th, and if the buying doesn’t stop there, the next possible resistance area to consider could be around the 22.15 level. That level marks the high of March 6th.
The RSI and the MACD, on our 4-hour chart, are pointing fractionally to the upside. In addition to that, the RSI is slightly above 50 and the MACD has just poked its nose above zero and its trigger line. However, in order to get a bit more confident with higher areas, we would like to see those indicators having a firmer move higher first.
Alternatively, if TRIP drops through the lower side of the triangle and the 16.94 hurdle, which is the low of this week, that may spook the buyers from entering any time soon. The stock might then slide to the 15.33 obstacle, a break of which may clear the path to the 13.60 level, marked by the lowest point of March.
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