Priceline (PCLN) is trading lower today, testing its rising 50-day simple moving average line. Is this foreshadowing further price weakness ahead, or is this a dip that we might want to buy? Let's run through all our charts and indicators to see what they are currently saying to us.
In this daily bar chart of PCLN, below, we can see that PCLN has made a number of rally failures since May. The rally this month has been stronger than the rally in September but prices have quickly retraced roughly half of the fall rally. If prices close below the rising 50-day moving average we might see further weakness to see a test of the late September low. Breaking the September low would also break the 200-day moving average line, should it happen. The daily On-Balance-Volume (OBV) line has been declining since early August and suggests that sellers of PCLN have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take-profits sell signal.
In this weekly chart of PCLN, below, we have a mixed picture. Prices are still above the rising 40-week moving average line. The weekly OBV line has been rising the past two months -- a different story from the daily OBV line. The weekly MACD oscillator has begun to narrow and could cross to the upside for a fresh buy signal, depending on the price action going forward.
In this Point and Figure chart of PCLN, below, we can see the recent decline and a downside price target of $1770, but there is support below the market.
Bottom line -- the chart of PCLN has weakened the past three months but it hasn't really turned bearish. The price action since May could turn out to be a large continuation pattern and prices could resume their bull trend. Stay tuned.