Tuesday, August 20, 2013

HomeAway, Inc. (NASDAQ: AWAY)

HomeAway, Inc., together with its subsidiaries, operates an online marketplace for the vacation rental industry worldwide. Its vacation rental properties include homes, condominiums, villas, and cabins to the public on a nightly, weekly, or monthly basis. The company's online vacation rental property marketplace enables property owners and managers to market properties available for rental to vacation travelers who rely on its Websites to search for and find available properties. It publishes detailed property listings, including photographs, descriptions, location, pricing, availability, and contact information. HomeAway also sells complementary products, such as travel guarantees and property management software and services. The company's portfolio of Websites comprise HomeAway.com, VRBO.com, and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es and Toprural.com in Spain; AlugueTemporada.com.br in Brazil; and HomeAway.com.au in Australia. In addition, it operates BedandBreakfast.com, for finding bed and breakfast properties, providing travelers with lodging alternatives to hotels.
To review HomeAway's stock, please take a look at the 1-year chart of AWAY (HomeAway, Inc) below with my added notations:
1-year chart of AWAY (HomeAway, Inc) Since March AWAY has essentially been trading sideways while forming a common pattern known as a rectangle. Rectangle patterns form when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. AWAY's rectangle pattern has formed a $34 resistance (red) and a $28 support (blue), which was also resistance back in October. A break above $34 would also be a new 52-week high.
The Tale of the Tape: AWAY is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $28, or on a breakout above $34. The ideal short opportunity would be on a break below $28.
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