Considering Priceline's Short Side
I have started looking at Priceline (PCLN) on the short side with options. I typically look at vertical spreads, so the risk is not outrageous. If you look at the daily chart, I can make a case for the sell side in this stock, now that the 60-minute chart has started to show reversal indications in the last couple of weeks. Let's start by looking at the daily chart and consider the reasoning.
You can see that I have labeled one prior rally swing which lasted $94.31 and the most recent one which lasted $95.88, which is very similar in price. This similarity in swings is within the context of a larger downtrend since the April 30 high was made. Initially, there were not any strong reversal indications that suggested we look at the short side, but now there are. Let's look at the 60-minute chart of this stock and I'll explain what I saw....446 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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