Trip.com Group Limited (NASDAQ: TCOM), here's my technical analy

23 июн.

Trip.com Group Limited (NASDAQ: TCOM), here's my technical analysis

1. Price Action:
The stock has shown significant volatility, with a sharp spike followed by a pullback. It's currently in an uptrend from the recent lows.

2. Key Levels:
- Support: $49.29, $47.79
- Resistance: $50.58, $55.97, $56.73
- Buy Point Zone: Identified between $47.79 and $48.39
- Take Profit Zone: Marked between $55.97 and $56.73

3. Trend Analysis:
After the sharp decline, the stock has formed a higher low and is now showing an upward trajectory. This suggests a potential trend reversal from bearish to bullish.

4. Volume:
Volume seems to have increased during the price spike, indicating strong buyer interest. However, we'd need more recent volume data to confirm the strength of the current uptrend.

5. Potential Opportunities:
- Long Entry: The "Buy Point Zone" between $47.79 and $48.39 presents a potential entry for a long position. This zone aligns with previous support levels.
- Target: The "Take Profit Zone" between $55.97 and $56.73 offers a logical profit-taking area, representing a significant resistance level.

6. Risk Management:
- Stop Loss: Consider placing a stop loss below the $47.79 support level to limit potential losses.
- Risk-Reward Ratio: The distance from the buy zone to the take profit zone suggests a favorable risk-reward ratio, potentially 1:3 or better.

7. Additional Considerations:
- The stock has shown the ability to make large moves quickly, as evidenced by the recent spike. This volatility presents both opportunity and risk.
- The current uptrend needs to break above $50.58 to confirm its strength and target higher levels.

8. Potential Risks:
- A failure to break above $50.58 could lead to a range-bound scenario.
- A break below $47.79 could signal a continuation of the downtrend.

Conclusion:
The chart suggests a potential bullish opportunity with a clear buy zone and take profit area. However, proper risk management is crucial given the stock's recent volatility. Traders should also consider broader market conditions and any fundamental catalysts that could affect TCOM before entering a position.

Remember, this analysis is based solely on the technical aspects visible in the provided chart. Always combine technical analysis with fundamental research and overall market sentiment for a comprehensive trading strategy.