Head and Shoulders/Symmetrical TrianglePrice has broken to the downside of the symmetrical triangle. There is also a Head and Shoulders top.
A prior triple bottom failed to provide support.
Short entry 119.65 with a downtrend.
A head and shoulders top is not valid until the neckline is broken with a downtrend. The neckline was broken some time ago, yet ABNB experienced swings to the upside but was unable to to surpass the prior high of 212.58, which is the head of the head and shoulders pattern.
The head and shoulders pattern begins with price in an uptrend and forming the peak called the 1st shoulder. Price retraces and form a even higher peak which is known as the head. Price retraces once again and forms the 2nd shoulder which can not surpass the head. The neckline can be drawn at the 1st shoulder retracement (pull back), but some may have different rules. We are all different. The neckline is strong support until it is broken, and then it becomes a level of resistance. The Head and Shoulder pattern is a reversal pattern and there must be a prior uptrend to reverse.
Some would measure the distance from the head to the neckline, then project that down from the neckline, which would constitute a 100% fall. Price can fall less or more than this and it is a guesstimate of where price may go.
A symmetrical Triangle is a common pattern and is comprised of two trendlines . One trendline slants up and one slants down. The trendlines converge and create a "price vacuum" and price is squeezed one way or the other. This pattern is neutral until a trendline is broken with a trend in that direction. Rules vary for this pattern, but I measure the wide end of the triangle and project it downward from the top trendline or upward from the bottom trendline at the point of the break of a trendline. Before the break of a trendline, the top trendline is resistance, and the bottom is support.
There was a bearish crossover of the 4 moving averages on this chart at about the same time price broke down from the triangle.
Price is oversold as demonstrated by RSI of 30 or less. Price can remain oversold for extended periods of time and if you buy a security based solely on oversold status, you will lose money.
Price is below the all time low which is the IPO price. I become a bit nervous in this region as there is no old support to catch price. ABNB will need to form new support levels.
Targets are in orange type below price. The larger type being target 1, target 2 is smaller and target 3 is even smaller and would be valid only if price passes target 1. There are no guarantees in life and any pattern can fail.
No recommendation
