Just a little under an hour ago I posted what we expected from PCLN today (if you didn't see it, check out the post) and just under an hour after posting that, we got it.
This is the daily chart of PCLN, in this morning's post I said the yellow trendline is the target zone for a head fake move, but Monday's move , while technically moving there, was not the kind of convincing move that is needed, the reason they run head fake moves and create bull traps in the first place.
Today's move thus far however, looks a lot better, I'd like to see volume up more, but it's early so I'm sure it will look good.
This was the Bull Pennant I said we should be watching for an upside breakout, it's what all technical traders are watching for, it's what they'll buy and that's what you need to set a bull trap.
Even though we have significant negative divergences, in the earlier update I showed 1-3 min intraday positives pointing toward this breakout.
Next we'll be looking for distribution in to the move to confirm a head fake/bull trap and if it's there, that's usually the best entry, best price and lowest risk (short). Right now it is just in line, it was positive, but since the breakout 3 min 3C is in line. I'll keep an eye on it as I'm very interested in this one, I've been waiting at least a week for the trade to come to us and now it is.
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