Can Bumble Gets Its Buzz Back on Earnings Report?

Bumble came public with a lot of fanfare, but the stock topped shortly after its debut. Can it get its mojo back when it reports earnings? Let's look at the chart.
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Bumble  (BMBL) - Get Report stock has not performed too well since the Austin dating service went public. It hit 52-week lows on Monday.

The shares are down about 5.7% on the day, but have fared much worse than that from the highs.

Bumble stock is down about 35.5% from its highs set on its second day of public trading, Feb. 12.

Its first day of trading drew very strong demand. But that hasn’t been enough of a catalyst for bulls to justify chasing the stock. 

It rallied in March after reporting earnings, but the selling has been too strong. 

Of course, it doesn’t help that there’s been a bear market in growth stocks, many of which topped out in mid-February, right around the time Bumble went public.

That’s even as other social media and dating sites have reported solid results and engagement metrics.

For instance, Match Group  (MTCH) - Get Report reported strong results, although it has struggled to rally. Facebook  (FB) - Get Report also had good results, but has since given up its post-earnings gains.

Will Bumble fit the same pattern when it reports on Wednesday after the market close?

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Trading Bumble Stock

Daily chart of Bumble stock.

Daily chart of Bumble stock.

For now, $55 continues to act as support. That marked the low in April and has been support over the past several trading sessions.

While it’s nice to see the stock find its footing, it also increases the risk of taking a long position near current levels as the shares remain in a downtrend. Should this level break, there’s no significant level of support below.

That risk is elevated with earnings in play due to the post-earnings reaction, with a large potential for gapping price action.

If Bumble stock breaks to the downside, look for a test of the 161.8% downside extension, near $50. Below that could put the $42 to $45 area on the table.

On the upside, we need to see Bumble reclaim the 10-day and 21-day moving averages and close above these marks. That has the potential to put an end to this nasty downtrend.

Above $60 puts the 10-week and 50-day moving averages in play, followed by the April high at $64.70, then the opening day low at $70.