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Here Are Airbnb’s Must-Know Chart Levels for Earnings

Airbnb has performed incredibly well since its IPO in December. Let's look at the charts ahead of its first public earnings report.

Airbnb  (ABNB) - Get Airbnb Inc. Report is set to report its first quarterly earnings as a public company on Thursday after the stock markets close.

After going public in December, the stock has done incredibly well. After initially planning an initial public offering price in the range of $44 to $50, the company lifted that price several times.

It didn’t matter though, as shares opened for trading up more than 100% from the final IPO price as it began trading at $146 a share.

With the stock sitting just below $200, many will find it hard to argue that Airbnb has been anything but a roaring success so far. However, the question lingers: Will it remain a success after it reports earnings?

Many consider the travel industry to be on the cusp of a major recovery following in the impact of COVID-19. If that’s the case, then Airbnb could be an early tell for the rest of the industry, including airlines, hotels and travel sites like Expedia  (EXPE) - Get Expedia Group Inc. Report and Booking Holdings  (BKNG) - Get Booking Holdings Inc. Report.

Trading Airbnb

Daily chart of Airbnb stock.

Daily chart of Airbnb stock.

After hitting its low in January, Airbnb embarked on a pretty steady ascent before topping out near $220 in mid-February.

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I don’t really like to see stocks go into the quarter on a high note. It sets a high bar to hurdle and can create a sell-the-news event. With Airbnb stock, we don’t have to worry about that.

Shares are 15% off the highs, even after a notable bounce from this week’s low. Now the roadmap is more clear.

So far the 10-day and 21-day moving averages are acting as resistance. On the upside, the stock needs to clear $200 and these two moving averages to regain momentum on the long side.

Above $200 puts the the recent high near $208 on the table, followed by a push up to the highs near $220.

If Airbnb stock can clear all of these levels, the 261.8% extension from the initial IPO range - from $121.50 to $165 - is in play near $235.

On the downside, the levels are also clear, starting with the 50-day moving average. A break of this level puts the day-one high in play at $165, followed by a possible dip down toward $155 should Airbnb really start to fall.

If the bottom blows out and Airbnb begins a multi-week decline, the $121 area could be back on the table.