Playing Priceline.com

Published on Friday, 23 December 2011 07:56 Written by Christopher Lynn

New York, December 23rd (TradersHuddle.com) - Shares of Priceline.com Incorporated (NASDAQ:PCLN) closed the trading session at $479.69 near its 50 day and 200 day moving averages currently set at $493.21 and $503.28 respectively. Priceline's price action is below these important levels, which makes the stock difficult to buy, as there will certainly be resistance as it approaches these important moving averages.

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 placed calculated support at $438.76 and calculated resistance at $480.09. These levels should be watched by traders, as they provide insight into the latest price dynamics in Priceline.com shares.

Traders should evaluate their options if they want to establish a position on Priceline.com given the heavy resistance expected near the 50 and 200 day moving averages. A trade might be evident as the stock manages to break these moving averages, however until the break materializes buying the stock is nothing different than flipping a coin. Other levels that traders will closely evaluate are the ones defined by the peak and troughs algorithm that provides great price level reference points.