Lately, we have been seeing mixed trading activity in the stock of the German technology company Trivago (NASDAQ: TRVG), which is mostly owned by the American travel company Expedia Group (NASDAQ: EXPE). The share price is mainly stuck between the 5.44 and 6.35 levels since mid-November. In addition to that, TRVG is also sitting below its short-term downside resistance line taken from the high of November, and above the medium-term upside trendline drawn from the lowest point of July. For now, we will wait until one of the lines gets broken, in order to get comfortable with the clear directional move.
A drop below the aforementioned medium-term upwards-moving trendline could force investors to start worrying about the stock’s near-term upside potential, especially if the price falls below the 5.15 hurdle, marked by the lowest point of December. This way the path may get cleared towards the next potential area of support at 4.78. which is the low of October 23rd. Certainly, if that hurdle is not able to break the fall, then a further push lower may take TRVG to test October’s lowest point, at 4.53, which may hold the stock from moving lower.
Looking at our oscillators, the RSI and the MACD, both remain somewhat flat for now. It seems that the RSI tried pushing higher but failed to get above 50 and now points lower. The MACD is currently below zero but continues to run in line with its trigger line.
On the other hand, if TVRG breaks the previously-mentioned downside and places itself above the 6.06 barrier, this might attract investor interest again. We may then see the stock being lifted to its next potential resistance zone, at 6.35, a break of which could push the share price a bit higher, to test the 6.53 level, which is the high of November 29th.
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