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: is the Chief Market Strategist at, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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