• book your gains in priceline pcln

It kills me I didn’t get in Priceline.com (PCLN) when it was trading in the high $700’s.

The pattern was perfect, but I couldn’t get a risk/reward ratio that I could play off of. Instead I chose to wait a bit for price to come back down. 

But nine days later, and nearly $100 higher, the stock has yet to come back down.

I’ve provided a chart below outlining my thoughts on what to do with PCLN at this point if you are still in the trade. Had I taken the trade nine days ago, I would undoubtedly be booking my gains in the position. 

I will often times use Bollinger Bands for the sole purpose of determining when I should get out of a trade, and right now the price action in PCLN shows a full body canlde outside of the upper band, which is uncharted territory for PCLN, and one that, based on past price action, will not be able to sustain. 

So book those gains that you have, and enjoy the fruits of your labor. Now is not a time to get greedy with Priceline. 

Another side note, right before posting this, I looked at PCLN using Bolliinger Bands with 3 standard deviations, and I can’t find any occurrence where price didn’t pullback after hitting the upper-band, and that is exactly what PCLN is up against right now. 

Here’s the chart breakdown. 

book your gains in priceline pcln 

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