Swing Trade Idea (ABNB) – February 21, 2023
Our bearish trade for Tuesday, February 21st is Airbnb, Inc. (ABNB). ABNB is part of the Consumer Discretionary, which has performed at 10.97% over the last month, with ABNB overperforming relative to its sector at 32.80% over the same period.
ABNB had a strong rally into an area of resistance at $140, from where we expect to see a lower retracement. As ABNB is overbought and has reached a level of exhaustion, we recommend a counter trend trade on ABNB, with the next support at around $110.
As a stop loss, if ABNB were to trade above $140 for multiple days, this would invalidate our analysis and will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $9.26.