Does Priceline Have Value?

 | Jun 06, 2014 | 8:45 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

pcln

Does Priceline.com (PCLN) have value at these levels?

If you've read a lot of my articles in the past, you know that I talk a lot about symmetry.  When I talk about symmetry in price, I'm talking about swings in the same direction that are similar. I'm seeing possible support in PCLN with one of these symmetry projections, but I'm not yet convinced that this area has value.

The zone is currently being tested and it comes in at the $1238.80-1244.19 area. If this area does NOT hold, I don't see meaningful support below that until $1183.73-1189.96. Let me show you what I need to see to feel comfortable on the buy side at these levels next.

 

Priceline.com (PCLN) -- Daily
Source: Dynamic Trader

 

For that information, I'm going to take it down to a 30-minute chart and run my analysis there. What I do like about the daily chart of PCLN is the fact that price is clearly above the 200 and 50 simple moving averages. Also the 5 ema is above the 13 ema, signaling that the path of least resistance is higher at the moment, in the bigger picture at least. 

 

Priceline.com (PCLN) -- 30 Minutes
Source: Dynamic Trader

 

Typically, I look for a trigger to tell me it's worth placing a bet against a key price support zone. For example, a buy trigger in this case would be the 8 ema crossing back above the 34 ema on this 30-minute chart, along with taking out a prior swing high. When both of these things occur, that is my typical signal to place a bet, as it indicates a shift in the recent downtrend on the 30-minute chart. In this case, I would also like to see the symmetry of the last couple rally swings on this 30-minute chart to be cleared. Note that two prior swings labeled on this chart were very similar. They were $15.25 and $15.89. Note that the recent rally from the last low was only similar at $15.30.

Bottom line, for a rally to get going off this key zone, I want to at least see a rally for more than $16 or $17 from any low into the first support zone. If it does, I will buy the next pullback after a breakout above this area and define my risk below the zone. A failure to do so tells me that this support zone is probably not going to put in a tradable low and I will back off the buy side until further notice.    

Columnist Conversations

Kass:
As Steve Sanders, er... Ian Zierling comes on! Beverly Hills 90210 was my family's favorite series ever. The b...
Right now ICE is still considered to be within a larger downtrend unless the zones discussed in the article (t...
big X up 8%+ after hours. 30 last. nice short squeeze.
Market woke up a bit today to the fact that the tensions emanating out of Ukraine are not going anywhere as th...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.