Approaching Resistance - Priceline.com

Published on Friday, 30 December 2011 09:10 Written by Christopher Lynn

New York, December 30th (TradersHuddle.com) - Shares of Priceline.com Incorporated (NASDAQ:PCLN) are trading very close to calculated resistance at $487.24 with the current price action closing at just $476.00 placing the stock near levels that make it difficult to buy.

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.

Priceline's current stock range is defined by current calculated support defined at $438.76 and by the resistance level at $487.24, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Priceline.com , as the stock is well above support, however, as the stock pulls back towards $438.76 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $487.24 then traders will get an opportunity to enter Priceline.com stock by establishing a position as the stock moves to a higher range.