Yelp Inc. (YELP) shares fell nearly 20% on Wednesday after reporting first quarter financial results that missed estimates and cutting its outlook.

Yelp reported revenue that increased 24.4% to $197.32 million missing consensus estimates by $1.28 million and earnings of $0.19 per share beating consensus estimates by $0.03. Despite the relatively solid performance, the company’s second quarter guidance of $202 million to $206 million in revenue fell well-short of consensus estimates of $215.3 million while EBITDA of $32 million to $35 million missed expectations of $36.9 million.

CFO Lanny Baker believes that the company remains strong despite the lower guidance for the second quarter, saying, “Sales productivity has rebounded, transactions revenue has accelerated, and we’ve seen promising results from our newly expanded retention efforts, giving us confidence in our ability to grow and scale in 2017 and beyond.”

From a technical standpoint, the stock broke down from its long-term trend line support at around $32.00 and S2 support at $29.84. The stock reached a low of $25.00 before rebounding to near its opening price of $27.91 on extremely heavy volume. Technical indicators suggest that the stock may be oversold with a relative strength index (RSI) reading of 25.31, although the moving average convergence-divergence (MACD) moved into bearish territory.

Traders should watch for some consolidation at these new levels before re-testing S2 resistance at $29.84 on the upside. If the stock moves lower, traders can look for trend line support at around $23.00. The knee-jerk reaction to the earnings announcement, however, could lead to a period of consolidation before a move higher or lower as the market sorts out the long-term meaning of the bearish second quarter and full year guidance.

Charts courtesy of Author holds no positions in the stock(s) mentioned except in passively-managed index funds.