Swing Trader

Good morning traders. Priceline Group, Inc. (PCLN) has closed lower six out of the last eight trading days. A broad market pullback may help the stock move into the long entry level illustrated on the chart below.

In early August, PCLN broke out of the triangle formed by the ascending magenta trendline and the green descending trendline.

The stock is now within a short distance of testing the breakout level and touching the ascending trendline for the first time. We are anticipating a reversal back higher from this level with a target around 1350 level (blue oval). The protective stop loss specified in today’s Bulls and Bears section is set approximately 1.5 times the daily average true range under the entry.