After putting in a possible Wave 5 Fakeout/Breakout of a putative Bearish Wolfe Wave, PCLN sold off to the 21-day Kijun-sen (solid red line), and a little lower, then reversed and is making a bid for the top of the Wolfe Wave. Stop busters are (1) a takeout of the 169.00 high at Wave 5, and then (2) the top of pattern, which comes in today at 170.04, particularly a CLOSE above the latter.
Back in July, the MACD made a positive divergence at Blue #1, ticked higher from there, at Blue #2, then went up through the signal line on July 15, at Blue #3. The next session, PCLN took out the high of the Right Shoulder of the H&S Top in the price chart (UH-OH), then took out the 119.14 high of the Head several sessions later (UH-Oh-h-h)), which put roughly 137.00 IN PLAY. The Bears got squeezed badly if they didn't cover either of those takeouts (the Right Shoulder and the Head).
In the current time-frame, the MACD has put in a positive divergence (Blue #1) and has ticked higher from there (Blue #2). Bulls have some momentum. Bears need to defend here.
4 comments:
thanks melf...
looks the chicago numbers made the bears job little easier this morning.
for a company of its size, it seems to behave erratically.
Good Morning,
Yeah, that helped The Bear case a lot ;)
i stick my foot in my mouth every time i post a comment. pcln rallied 8 points in three hours after i posted...
well, at least i was right about the erratic behavior...
Kevin,
Yes, that was a wild one yesterday. Looks like they cleared the boards on some stops, which I suspected yesterday morning.
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