Is Priceline.com Expecting Resistance Soon?

Published on Friday, 22 June 2012 07:52 Written by TradersHuddle Wire

New York, June 22nd (TradersHuddle.com) - Priceline.com Incorporated (NASDAQ:PCLN) ended the trading session at $657.58, near its 50 day moving average set at $682.73. Priceline's price action placed the stock below this important level, which makes it difficult to be bought, as the stock will certainly face resistance as it approaches its 50 day moving average.

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.

The latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $603.49 and resistance at $683.37. These levels will be closely monitored, as they provide great insight into the latest price dynamics.

If traders want to establish a position in Priceline.com , given the resistance expected as the stock approaches its 50 day moving average, a trade might materialize as the stock manages to break this important technical level. After the breakout, the 50 day moving average could be used as support going forward. However, until the break materializes, buying the stock is basically a gamble with 50-50 chance.