Boxes trading strategy example. $ABNB stock.

2021년 8월 19일

Continuing my tutorials on boxes trading strategy.

This time let's analyze ABNB stock price movement.

Taking all appropriate steps as described in my first lesson:

1. Identifying long-term trend channel.
2. Finding supply and demand zones.
3. Drawing a box inside which price is moving sideways.
4. Buying demand zone bounces.
5. Watching for breakouts.

There are some curious details in this stock's price movements.

We can see there was an attempt for a breakout from the box on the session opening of July 1st. However, there was not enough volume for the move higher, so the breakout failed.
As expected, the stock reversed to go lower in the followind days.
Even though this stock is in a falling trend channel, it's very news sensitive stock.
For instance, if there are positive news regarding COVID mitigation, we could see a major breakout from the falling trend.
-----------------------------------------------------------------------------------------------------------------
Airbnb has been on my radar for a long time now. Personally, I think it's a great long-term investment and I've been buying the stock on it's way down. I believe it will be a great post-COVID play.
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.