On March 17th, we discussed TripAdvisor's critical technical situation, highlighting how the price was defending a major support area around $13, marked with a blue line on the chart. At that time, we noted that bearish pressure was steadily building, increasing the likelihood of a breakout to the downside.
And indeed, the breakout occurred at the beginning of April. The price decisively broke below the major support level, which activated a strong sell signal. Since then, the technical landscape has shifted: the former support around $13 is now being tested from the underside as resistance.
Currently, TripAdvisor's price is hovering just below this blue zone, in a classic "broken support turning into resistance" scenario. This retest is crucial, as it will likely determine the medium- to long-term future for the stock. A bounce lower from this resistance would confirm the bearish outlook and bring a fresh signal to sell, targeting even deeper declines.
On the other hand, if buyers manage to push the price back above the blue zone and close the day above it, it would invalidate the previous breakdown and generate a strong buy signal, flipping sentiment back to bullish.
All eyes are now on how the price behaves at this key area. The outcome of this test will likely set the tone for TripAdvisor in the weeks ahead.