The Trade On Priceline ( $PCLN )

I have been watching Priceline ( $PCLN ) over the past few  weeks for another opportunity to play for downside - and when I say downside, I mean a $100-200+ move.  Such an opportunity presented itself right at the end of 2015 and into 2016, where the stock fell from $1350 to $950 in eight weeks. The major sell signal was the bearish MACD crossover, which has been a very reliable setup over the past 12 months - but the real selling took place when the stock broke under the 200 day moving average. I shared this chart at the start of the year:

And a quick visual on what happened to the stock once it broke under the 200 day moving average:

Fast forward to today and It seems like Deja Vu, as Priceline ( $PCLN ) failed to break new highs, and is now exhibiting a Bearish MACD crossover :

I think the stock continues to slide, and looks to retest the 200 day moving average.

A few quick reasons why besides the chart:

  • Existing and continued Geopolitical headlines/concerns will weigh on travel sector sentiment, just like it did in quarter 3.
  • Competition from Airbnb still not priced into the stock; company not even on Priceline's radar till the 2q of 2014 they certainly have underestimated them and think they continue to:

The stock closed at $1287, and is now only $41 away from it's 200 day moving average. I added puts to play for a move under $1250 this week. If it fails to break the 200 day moving average over the next few sessions, I will close the position. If it breaks below, I will be adding strikes to play for a move to $1150, which should happen rather quickly under $1246.

Happy Trading!


JimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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