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What a Trip! PMO Finds Two Travel & Tourism Stocks Poised To Take Off

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This afternoon I ran one of my PMO scans (you'll find the link to my most popular scan in the link at the bottom of this article) and found two Travel & Tourism stocks that I found quite interesting. What I look for are Price Momentum Oscillator (PMO) readings that are rising or have had a positive crossover along with a favorable price chart. TripAdvisor (TRIP) and Booking Holdings (BKNG) both fit the bill.



TripAdvisor (TRIP) hasn't yet broken out above resistance at $42 and declining tops line resistance is also right around there. I am looking for a breakout here. What's nice is you can set a tight stop around $40, but upside potential is at $46. A symmetrical triangle has formed. These are continuation patterns which would suggest an upside breakout from the triangle. The PMO is set for a crossover BUY signal. Note previous PMO BUY signals have accurately come in before intermediate-term price rises.

Booking is my favorite of the two. Not only do we have a classic cup and handle bullish formation, the PMO is nearing a positive crossover. Notice the healthy OBV and in the thumbnail, the clear accumulation of this stock throughout April. This pullback on the "handle" provides a great entry point with another tight stop available around 2100. Upside potential is a move to 2250 or higher.

Technical Analysis is a windsock, not a crystal ball.

Happy Charting!
- Erin


Helpful DecisionPoint Links:

Erin's PMO Scan

DecisionPoint Shared ChartList and DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking


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Erin Swenlin
About the author: helped create and manage the DecisionPoint.com website alongside her father, Carl Swenlin. Together, Erin and Carl launched the DecisionPoint daily blog in 2009. She hosts the MarketWatchers LIVE web show at StockCharts.com, and is also a Member of the CMT Association. Learn More
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