Priceline.com Waiting for a Break Out?

Published on Thursday, 22 December 2011 07:56 Written by Christopher Lynn

New York, December 22nd (TradersHuddle.com) - Shares of Priceline.com Incorporated (NASDAQ:PCLN) closed the trading session at $472.33 near its 50 day moving average currently set at $493.32. Priceline's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 50 day.

Priceline.com Incorporated (NASDAQ:PCLN) operates as an online travel company that enables consumers to save money on a variety of products and services. The Company allows customers to name their own price on products or services and communicates that demand directly to participating sellers or to their private databases. Participants include domestic and international airlines, and hotel chains.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $438.76 and calculated resistance at $480.09. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by Priceline.com shares.

Traders should evaluate their trade if they want to establish a position on Priceline.com given the resistance expected as the stock approaches the 50 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.