Last up is Kayak Software (KYAK), the firm behind the online travel site Kayak.com. Kayak went public in late July, kicking off to an auspicious start after a series of high-profile IPO flubs this year. But while shares rallied up to $35.35 a week and a half after the stock's first session, they've swung a lot lower since, making new all-time lows yesterday.
Trading an IPO carries a lot of risk - in fact, given 2012's poor history of investor support for newly public firms, I'd recommend steering clear unless you've got one heck of a compelling reason to buy. But now that Kayak has established some semblance of a trading history, we can draw some conclusions from its chart.
One is that this stock is in freefall mode right now. Shares had seen support at $30, and while they attempted to catch a bid at that level late last week, selling pressure overwhelmed any bids that stepped in at $30. Now that former support level has become resistance.Facebook (FB) has been a cautionary tale for IPO investors this year, and that's likely to keep investors afraid of Kayak until the company can prove that it's fundamentals are worthy of buying. Watch out for Aug. 22 earnings. Until then avoid this stock like the plague. To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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