TripAdvisor breaks from a bearish trendline, but should you buy now?

Oppenheimer has a perform rating for TripAdvisor, Inc. stock (NASDAQ:TRIP). The rating came after the quarter results, which showed robust recoveries from the Covid -19 slowdowns.

In its second-quarter results, Tripadvisor reported a net income of $0.37 per share. The income was a jump from a loss of $0.07 per share the prior year. The company booked revenue of $417 million in the quarter, an increase of 77% from the previous year. 

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In a note after the quarter results, Oppenheimer said that TripAdvisor was on its way to a solid recovery. The analyst still noted that the recoveries might flatten in the second half of the year due to forex and APAC drags. 

TripAdvisor technical analysis – Correction likely to a suitable support

Technically, TripAdvisor has overcome a bearish trendline that has been in place for more than a year. The breakout was inspired by the robust second-quarter results. However, TRIP is undergoing a correction that is likely to continue in the next few days.

The momentum indicator shows that TRIP remains in the bullish zone. Nonetheless, the MACD line is crossing below the moving average. That suggests a potential bearish move for the stock after hitting a resistance at $28.

Concluding thoughts

The second quarter results were a catalyst for a bullish move of TRIP. The breakout of the bearish trendline ushers in bullish momentum. The stock hit resistance at $28 and could continue to correct. The next support is at $21, the breakout zone. Investors should buy the support zone.