Trading Idea - Priceline.com Broke Resistance, What to Expect?

Published on Thursday, 09 September 2010 04:28 Written by TradersHuddle Staff

New York, September 9th (TradersHuddle.com) - Shares of Priceline.com Incorporated (NASDAQ:PCLN) closed the trading session at $328.77 just above calculated resistance at $318 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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 stock was trading in a well defined range with support at $217.721 and resistance at $318, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Priceline's stock is still near the broken resistance level, traders will be focusing on $318 to see if the stock holds the breakout without rolling over.