PCLN Follow Up

PCLN is now the best performing equity core short position (after BIDU was covered) at an 18+% gain, on the 19th I covered PCLN and said it was very close to an add to position.

Lets take a look because this one (if you didn't take advantage of some recent intraday moves to the upside), is still in a decent overall position as it seems to be completing a counter trend rally.

There aren't any strong signals showing PCLN likely to put in a decent bounce right now, they may show up, but this is probably a decent candidate for a phased in entry with a wide stop (taking on fewer shares) and allowing yourself the room to add to the position on any price strength.

Above in the yellow box is the core short entry on a negative divergence/head fake breakout move. Note how these positions are shorted in to price strength, but underlying weakness as there was a large 60 min negative divergence. To the right we have what looks like a counter trend rally ending as it just failed to fill the gap.

 On a daily chart here's the entry after a false breakout or head fake breakout from a wedge, you really couldn't get better positioning. The small yellow arrow is the 19th when the last update was published.

 The  30 min chart shows the end of the counter trend rally and how 3C had gone deeply leading negative, with resistance being very clear, a head fake move above it becomes very likely and that's just what happened at the yellow arrow above. This is one reason price alerts are a traders best friend, there's no way to keep track of all the opportunities in real time as they can happen so quickly, price alerts are a great tool.

 The 15 min chart falling apart even worse since that head fake move to the upside.

And the 3 min chart which has shown this area to be under distribution since at least the 14th, actually much longer, but thi is where it becomes a higher probability trade.

If you can get a better price entry, feel free to check with me on the underlying action, otherwise as mentioned, you might consider phasing in to the position in 1/3rds or so.