Patterns in Priceline PCLN Range and Breakout Levels

May 5, 2016: 10:58 AM CST

Priceline (PCLN) gapped down from a lengthy trading range yesterday but may be trying to re-enter it.

Let’s search for “Patterns in Priceline” and plan any trading opportunity from there:

First, let’s focus on the Rising Range Price Pattern as highlighted above.

PCLN is a high-priced stock that traders can approach with option strategies, even simple put or call buys.

Yesterday gave us a big breakdown under the $1,260 level which was a key rising trendline.

The upper rising resistance trendline intersects a price level just under $1,400 per share.

The Midpoint Magnet Price is near $1,330.

With those levels in mind, let’s continue to focus on the current breakdown and two price pathways:

The first pathway – a BULLISH PATH – suggests that price re-enters the trendline range, triggering a BEAR TRAP outcome.

If so, we would look to play bullishly within the pattern back to the Midpoint (at least) near $1,330.

Otherwise, the breakdown or BEARISH PATH opens similarly to that of January 2016 with a sustained breakdown and breakout of the pattern.

Price gave us two such breakouts and returns back inside the pattern.

Here’s an indicator-based chart for more clarity:

Not only did price break down out of a Rising Range Pattern, but it also broke under the 200 day SMA.

I highlighted (green) each time price retraced toward – then bounced up away from – the 200 day SMA.

Again, we see the January event where price broke and collapsed lower (beneath $1,200).

In simple terms, focus on the $1,250 level as your Bull/Bear Pattern Pivot and trade the departure away from here.

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Corey Rosenbloom, CMT

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1 Comment

One Response to “Patterns in Priceline PCLN Range and Breakout Levels”

  1. Randiv Says:

    This looks ideal pattern for us to trade on, I believe if we’re really wishful to achieve positive results then we need to work well with proper way and only then we will achieve something good. I trade with OctaFX broker and with them; I am always in good zone especially to do with their low spreads from 0.2 pips to high leverage up to 1.500 while there is also epic 50% bonus on deposit which is also use able, so all too good for me!