PCLN / Tech Update

PCLN was another mentioned in looking for a good target area

PCLN already put in the positive divergence that has it moving as shown last night.

I'd like to start a position in PCLN, I'm feeling a bit overweighed in Tech right now so if I did, it would have to be a small position.

PCLN is in somewhat of a holding pattern right now, it formed a triangle (consolidation) and is lingering in the area. Now that Europe has closed, do we see the trend of $USD weakness to pull stocks higher? So far the EUR/USD is in the same consolidative holding pattern.

 Here are the target areas I marked last night for PCLN, note the very small bodied daily candle today, indicative of indecision. All of the averages right now are in a holding pattern, some worse than others such as the NDX.

 The 2 min XLK-Tech chart is still in line, I believe there is still the will to take the market higher, does Wall Street have the will though to throw more support in the mix if needed?

 The 3 min chart is showing what we expect to see in to higher prices, non-confirmation which leaves Tech in a leading negative divergence, this is normal and prices "can" still rise in this situation. We are supposed to see selling in to strength. It is when 3C shows an overwhelming negative divergence that we know they are preparing the market to move lower upon their completed mission.

 On the 5 min chart I'm giving what I think is probably the average accumulated price, distribution takes place only after prices are above this average position, we are in the area, but in my opinion not as high as we would normally see. So, more upside in the cards? I think that is the plan.

 PCLN's current move is being fed from this 15 min positive divergence from the 20th to the 24th, however the first signs of a negative divergence are appearing on this chart. A 15 min chart usually does not move very fast, but when it does, there's typically a very quick reversal following that divergence. I don't see this as red-line critical, but it is under way.

 Here's the short term 1 min PCLN, this negative divergence has thus far caused the holding pattern.

 The divergence has bled to the 2 min chart

 and now the 5 min chart. Should these worsen dramatically, the 15 min chart will decay and PCLN will be that much closer to its final upside destination.

 A closer view of the 15 min shows today's non-confirmation of the move higher which came late yesterday.

 Here's the holding pattern as of this capture.  It looks like PCLN is trying to break north of the triangle right now.

 Back to the XLK charts, the 15 min here still is in line, despite the underperformance today. My guess is we have enough support to get through today, who knows what comes out of the EU tomorrow though?

XLK 1 min is in line as well, so for the time being, I'm going to stay patient with PCLN as I already am a bit tech heavy. If price offers a nice price level, which reduces risk and the negative divergences are very strong, I will probably add some PCLN, otherwise because of my tech heavy positioning right now, I'll pass. In other words, only if the trade looks too good to pass up. Your situation may be different as you may not have the same exposure to tech that I have. I still like PCLN, but only at the price levels marked last night and shown above.