BOOKING on its way to record highs

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The stock is currently immersed in a wide bullish channel that has brought it close to its all-time highs.

The stock is currently immersed in a wide bullish channel. However, just over a year ago, the online booking company was in free fall as a result of the selling panic caused by COVID-19. The violent selling pressure led it to record a new multi-year low around $1,110 zonal (levels not seen since 2016). After the heavy punishment, Booking was able to recompose itself and initiate a strong and sustained recovery that led it to record a revaluation of more than 120% in just over a year. This has allowed it to pierce, with little difficulty, the last relative high left at the beginning of 2020 and even to record a new all-time high at 2,470 dollars zonal.

Above $2,350 is now the first hurdle to overcome. Overcoming it would cancel the last bearish gap, a potential bullish reversal signal that would leave the way practically clear to 2,470 dollars. A daily close above this level would confirm its entry into a phase of free ascent, a scenario conducive to developing a new impulse in search of the upward projection of its current trend structure, i.e. the 2,850 dollars zonal level. Once this level is reached, a further extension in search of the important psychological level of 3,000 dollars could not be ruled out.

Below, the congestion range developed between 2180-2160 zonal dollars is now its main support reference to watch. A daily close clearly below $2,160 would confirm a first technical sell signal, a bearish catalyst that could trigger a new corrective leg in search of $2,040-2,000 zonal. Once this level is reached, Booking could try to seek support at its medium-term bullish trendline, currently coinciding with its 200-session moving average. A hypothetical perforation of the same in weekly closing prices would leave the stock in a relative free fall phase, a potentially negative scenario that could encourage a second major corrective impulse in search of its next primary support located above 1,600 dollars zonal.

Resistances: 2,350, 2470 dollars.

Supports: 2,180-2,160, 2,040-2,000, 1,845. 1,600, dollars.

Targets: (Bullish) $2,450, $2,850, $3,000 (Bearish) $2,200, $2,040, $1,860, $1,600.

Trend structure in BOOKING:

  • Short term: Neutral-bullish.
  • Medium term: Bullish.
  • Long term: Neutral-bullish.

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