by Steven Sarnoff
Markets don’t move down a one-way street. The news of record-setting stock prices Mr. Trump is so fond of touting hasn’t been booked by this Internet darling. As you can see by my daily candlestick chart of TripAdvisor shares, the online travel brand company settled today’s session pointing south.
Note today’s close near the intraday low posted a consecutive negative black candle line, with TRIP turning lower at the bearish influence of its falling 20-day line of average price movement. This negative character of the behavior of share price movement shows sellers making TRIPS’s travel arrangements and indicates the likelihood of lower prices down the road.
I see underlying technical support (demand) at $38.55-$39 and $35-$36. Overhead resistance (supply) resides at $40-$42 and $44-$46.
If first support gives way, TRIP shares may truly be tripped up and stumble to secondary support in the mid-$30s. At the start of October, our Options Hotline subscribers positioned for profit with $40-strike puts. Our price objective is a continuation move toward $35 per share by the third Friday in November.
A couple of weeks ahead of a quarterly earnings report, investors and speculators should be prepared for a coming TRIP to the downside.
Let me know if you have any questions. I’m always happy to hear from my great subscribers, even when you tell me my picks are crazy. And if you are new to options, would like to follow our TRIP trade and see what’s coming over the weeks ahead, click the subscribe button on our homepage and begin putting the power of my Superleverage method to work for your fun and profit!