When Will Priceline Flatline?

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The big mover after hours is Priceline (PCLN). The last time I did a post about Priceline, it was a bullish one (yep, believe it or not – here it is), but we’ve already exceeded my target. Upon examination, it occurs to me my target was calculated poorly, because I didn’t closely examine the prior breakout and its own behavior..

The last basing pattern we had, we had a low of 411.26 and a high of 553.42, after which the price eventually reached 774.96 before losing all of its gains. The cool thing is that it didn’t move up the same amount as the high/low range; it moved up 1.5 times that amount, almost exactly.

Using the same simple algorithm, we can see the latest base has a low of 553.42 and a high of 745.24. This yields a range of 191.82. Adding that figure (times the 1.5 coefficient) to the 745.24 high produces a sum of 1032.97.

After hours, we’re already trading at about $970, which I’ve marked below with a green tinted line. Priceline is a dangerous beast to short, but if we get to about $1030, I think it’s going to be an extremely tempting target.

0808-pcln

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