Don't Ignore This Chart! (PCLN) Fills Gap, Confirms Bullish Pattern


After its latest quarterly earnings report, traders rushed into (PCLN) as it surged nearly 100 dollars from 1283.99 to 1382.61 on a post-earnings gap.  Patient traders, however, have seen PCLN return to its pre-earnings level as it closed on Friday at 1283.80 just seven trading days later.  Perhaps the better news is that PCLN broke out of an inverse head & shoulders pattern on its weekly chart and recent weakness has provided a potential retest of the breakout level.  The selling has also helped to unwind overbought oscillators on its daily chart (only weekly chart shown below).  Take a look:

The MACD on PCLN also seems to be showing improving strength and upside momentum acceleration.  Finally, PCLN is again outperforming its peers as it did in 2013, when its stock price surged.

Happy trading!


Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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