PCLN Short Trade Follow Up

On Monday I showed you PCLN and sad I liked the short trade right there at $544.71.

Here's Monday's entry at the red arrow with the tightest stop at $549, so far so good. Wider stops were around $550.

Here's PCLN now...

 The 3C 10-min chart. There was a small positive divergence late yesterday leading to today's bounce, but that looks to have failed with a negative divergence.

 The 5 min chart is showing the same, confirmation, a slight bounce and the negative divergence on today's bounce.

We are starting a pattern of lower highs, lower lows and the red trendline will mark the next lower low once support there is broken, it should come on increased volume. I still like PCLN as a new trade even here. If you are interested, we could look for some strength to short in to, or you may prefer to short the break of support, making a second lower low in the downtrend, which is a good indication that the trade is moving in our favor.

There's plenty of downside potential here so if you like the trade, you certainly haven't missed the boat.