Airbnb had a strong session yesterday as it became a constituent of the Nasdaq. But will this momentum continue today with the news of new regulations in NYC?
Airbnb's stock currently trading at around $141.69 a share, we can see that yesterday was a very strong session for the rental giant as it officially became a constituent of the Nasdaq 100 index. Applying the Bollinger Bands on the daily timeframe, we can see tit has now reached the upper band due to yesterday's sharp rise.Therefore, it may be a little challenging for the price to overcome this resistance point. Additionally, in the last 24 hours, New York City has implemented new regulations for renting companies. Hence, this may place some strains on the stock in today's US open. Looking towards the downside, support levels sit at $138.86 then at $137.10 and then at $135.48. A break below $135.48 could see the price return to the middle moving average of the Bollinger Bands. On the other hand, if the news about new regulations fail to tarnish yesterday's optimism, then resistance sits at $144.21 (yesterday's high). A move above this point could see the price head higher towards $146.55, and maybe even extend to $148.40. Based on the technical indicators at this moment in time, the short-term outlook remains positive. The MACD is positive with a rising volume and the RSI reads 61.