TripAdvisor TRIP Takes a Big Journey Higher off Support

Jun 17, 2015: 2:13 PM CST

One of the strongest stocks today is TripAdvisor (TRIP) which launched powerfully up from a key support level and positive divergences.

Shares have already broken resistance and trade just shy of a key price target.

Let’s update our chart and see this event and what levels are important to traders right now.

Here’s the level and our updated target planning strategies:

The Daily Chart highlights the key support level at $75.00 per share which is the combination of the following:

  • The 61.8% Fibonacci Retracement as Drawn
  • A Visual Price Pivot Level (late 2014 and May 2015)
  • A Weekly Visual Price Pivot Level (see chart below)

The Momentum Oscillator formed a clear positive divergence into this level in June.

The result was a spring and take-off on a long journey higher, blasting through resistance toward the prior price high target.

Right now, we’re watching for a possible full instant test of the prior high into $90 to $92 per share.

Study the support level and divergences for a great educational reference.

Let’s jump up to the Weekly Chart for more trade planning.

Here’s the weekly chart if we pull back the perspective from the key levels shown above:

Let’s start first with the Green Support level as drawn.

It’s a multi-pivot point going back to 2013 and came into play currently in May and June.

Above that is our current focal point (yellow target) which is into $90.00 per share.

Note the two doji reversal candles into a key support level ahead of today’s surprise bullish surge.

A target level is both a spot to take profits and for aggressive short sellers to consider taking a position (into the target).

The same is true with price challenging a support level like $75.

It’s the inflection or movement AWAY FROM key pivot levels that help set up swing/short-term trades.

With price far away from $75.00’s pivot, we’re now focusing on the current pivot target of $90.00.

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Corey Rosenbloom, CMT
Afraid to Trade.com

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3 Comments

3 Responses to “TripAdvisor TRIP Takes a Big Journey Higher off Support”

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