Priceline.com (PCLN) rallied above the 1999 high at $990 in August 2013 and topped out at $1,378 about eight months later. It posted lower highs and lower lows into February of this year and gapped up to a six-month high, ending the string. Price action since that time shows a consolidation on the 50- and 200- day exponential moving averages, currently between $1,160 and $1,197. The stock rose 2.5% in Tuesday's session after CEO Darren Huston made optimistic comments.
Volume rose to its highest level since May 7, suggesting the test at moving average support is coming to an end. The next obstacle lies at the unfilled gap between $1,230 and $1,260, which also marks a failed breakout above the declining highs trendline, which will come back into play when price rises to the lower edge. The multiple barriers could take a minimum of three to six months to overcome.
For more market analysis from Alan Farley, sign up for The Daily Swing Trade, published Monday through Friday.