Leading global provider of online travel and related services, Booking Holdings Inc. (BKNG), has been a standout in the SIA S&P 100 Index report, maintaining a position in the Favored Green Zone for most of 2023-24. Until recently, BKNG’s shares were market leaders, outperforming most other stocks and becoming a favorite among portfolio managers looking to exceed market averages. During this period, Booking Holdings did not disappoint, with its shares rallying from $2,365 to nearly $4,200. However, there seems to be a shift, as BKNG has now entered the Unfavored Red Zone of the SIA S&P 100 Index report, trailing the overall market and its peers, which has led SIA practitioners to step to the sidelines. Having analyzed BKNG through our primary lens, the relative strength matrix, we turn to the weekly candlestick chart. This chart illustrates a well-defined channel (thin black lines) that had previously supported significant gains for investors. The recent data indicates a breakdown through this channel, ending its winning streak. The pullback has also moved through an important support level at $3,450 (dotted red line), which is likely to act as resistance during any recovery rally. Long-term resistance is noted at $4,100 (upper red line). BKNG shares are now holding around the $3,100 support level and are testing short-term resistance at $3400, providing an opportunity for further evaluation.
Turning to the Point and Figure chart, scaled at 2% and with the SIA Report History overlay tool, we see the previous outperformance highlighted in green. While BKNG was in the SIA Favored Green Zone, it gained 55%, compared to the S&P 100’s 32%. The recent column of O’s and the Unfavored Red color indicate a shift to underperformance. Support levels are now clear at $3,183, with additional levels at $2,716 and $2,460, which should offer substantial support, reinforced by a 3-year consolidation band.
The long-term trend line (blue box) is important area as well and while this level is well below the current price, it could be important re-entry position during market stress. With a SMAX score of 3 out of 10 (reflecting minimal short-term performance relative to other asset classes) shares of BKNG currently shows limited short-term performance against the other various asset classes.
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