tsla

Airbnb Stock is Running Into Layered Technical Resistance

A key trendline just rejected ABNB's recent rally attempt

Oct 11, 2022 at 10:13 AM
facebook X logo linkedin


After an unsuccessful retest of 2020 and 2021 support at the $130 level last month, Airbnb Inc (NASDAQ:ABNB) has sold off sharply. Since its addition to the Nasdaq-100 Index (NDX) in late 2021, the shares have consistently disappointed, currently down roughly 35% year-to-date. More recently, ABNB hit resistance at its 50-day moving average and $115 level – from which the shares broke down below a trendline connecting higher lows since its June bottom.

 

abnb wt repost oct 11

This week, the stock price peaked just below its early-August earnings close. Shorts have been building their positions since late April, and are likely to use rallies to build more positions as they are profitable and have no urgency to cover.
 
Recent peak OI at the $115 is the site of the first strike where call OI is higher than put OI for all options expiring through October. Put OI is stacked down below the 90 strike and could act as short-term magnets on additional weakness.
 
Meanwhile, analysts’ 12-month consensus price target of $140.43 is a roughly 30% premium to current levels. Our recommended put has a leverage ratio of 3.9, and will double in value on a 20.8% drop in the underlying equity.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this ABNB commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.