As shown on the daily price chart, the price essentially reached the upper band of the rising price channel, and it appears the resistance has prevented PCLN from reaching the 1000 level on this attempt.
(click on the chart to get a larger view)
Looking at the 30 minutes intraday chart, PCLN was able to hold the support level near 976 for nearly the entire trading session until 30 minutes from the close. During the last 30 minutes of trading, PCLN sold off and closed near the low of the day. This negative closing price action could possibly be signaling more price decline for the near term. If PCLN fill the earnings gap, it could drop down to test the 920 level. And if it doesn’t hold the 920 level, then the next possible support will be near 875.
Certainly there is always the other side of possible price movement for PCLN. It could shake off this half hour sell off near the close as simply profit taking and when trading resume, it could regain its momentum and surge through the 1000 mark. After PCLN has crossed the 1000 mark, the talking heads and the media will be buzzing and hyping PCLN. This hype will most likely attract the ‘need to get in’ crowd to buy into PCLN, and that could be the final move to form the climatic top for PCLN.
In regardless which direction PCLN price will take, one should use protective stop or trailing stop to avoid getting caught in a sudden sell off or a climatic blow out reversal.
