Does Priceline Have Value?

 | Jun 06, 2014 | 8:45 AM EDT
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Does (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. (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. (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.    

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