PCLN formed a nice top over the time of almost a year. In the beginning of october the price broke below the major support zone that was its lower boundary during this stage 3 topping phase. PCLN moved about 9% lower and rebounded to the prior support zone. The volume has risen during the decline and contracted nicely during the intermediate term uptrend (the rebounding phase) confirming the bearish signal of the breakdown. Back in this supporting zone we would like to see it hold. Ideally we would like to see the intermediate term trend topping out and then starting to decline, suggesting an ideal entry point to this trade.
Every stop loss should be customized to personal profile but I see a good opportunity for the stop just above 1210, which would be right above an important structural level which has acted as S/R before and right above the 30 week MA (150d). This would return a loss of about 6.5% from a potential entry point.
Every stop loss should be customized to personal profile but I see a good opportunity for the stop just above 1210, which would be right above an important structural level which has acted as S/R before and right above the 30 week MA (150d). This would return a loss of about 6.5% from a potential entry point.