Thursday, April 26, 2012

PCLN

Last one for tonight

 The 5 day PCLN chart shows the same parabolic move as AAPL and the start of what looks like the other side of that move. PCLN should be able to retrace the parabolic move and maybe then some, although that will be a sticky area around $500.

 On the daily, PCLN already broke support, this is when we always see the volatility shakeout of the shorts, which happened today moving above resistance. There are two more levels, I don't think $750 is out of the question and that's where I'd love to get  position started.

 The long term 60 min chart shows the trouble in the stock, I didn't fill in the leading negative divergence because it's so obvious.

 PCLN is less about a positive divergence today and more about the 15 min positive of the last several days and PCLN's ability to stay in line intraday thus far.

The 1.3 and 5 min charts all pretty much stayed in line (price confirmation) so it doesn't look like that positive divergence that got PCLN moving today is under heavy distribution quite yet, longer term we can see that there is a wicked negative divergence, but for this particular move, so far it look like it has more to go as the short term charts haven't gone negative yet. Judging by the 60 min, they will and when they do, PCLN should be an excellent entry point with less risk.

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