PCLN Follow Up

Friday I posted this about PCLN  In the face of broad market weakness, PCLN was showing good strength and also entering an area that could set up a potential false breakout and a fairly low risk short trade.

While this trade, if you chose to take it is a bit early as we do not have a confirmed reversal, I think the risk in the trade makes it attractive as a speculative position or a foot in the water (you can always add to a position moving in your favor).

 Here's PCLN breaking to new Swing Highs while the broad market was weak, the move was suspect on that basis alone. Today we are back below the support/resistance level that is key for the short term.

 Here are two potential stops, 1) above Friday's highs and the second above today's highs thus far.

 I wanted to see some volume uptick on the break of support and we saw that this morning on the open.

 In Friday's post, I showed you a range of negative 3C charts, but this 5 min shows Friday's move as being suspect as 3C went in to a negative divergence at the new swing high.

ADX on the hourly chart turned down from nearly 50 last week, showing the trend was losing strength. The stop channel which has held the uptrend is now showing a stop on a 30 min chart at the $550.00 area, so that's another potential stop. I wouldn't place a stop at an even number like $550., but perhaps something like $550.27 or $549.88.