Priceline has been one of the top performers over the last four months, but a correction may be in the cards after a high-volume bearish engulfing pattern. Notice how the stock opened above the prior close and then declined to close below the prior open. The strong open failed to hold as the prior candlestick was completely engulfed. You can find more of these patterns on a predefined scans page.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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