Shares of Airbnb, Inc. (NASDAQ:ABNB) have trended lower since the company reported its earnings. But the stock has found support around $108. This means it may rally.

There is a reason why the $108 level is support. It’s because it has previously been a resistance level.

As you can see on the following chart, last month, sellers put a top on ABNB when it reached $108. But the stock eventually broke the resistance and moved higher.

Many of the investors who sold now regret doing so. A number decide to buy their shares back but will only do so if they can get them for the same price at which they bought them.

If there’s a large enough amount of these buy orders, it will create support at a level that has been resistance. That’s what happened with ABNB and the $108 level.

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Photo courtesy of Airbnb.