The breakout of the box from the chart is powerful with a gapped up ER play, but turned out to be used for selling.
PCLN dropped from 144.34 down to 45.15.
Review of PCLN ER Play (1 year ago, 2 charts)
The breakout of the box from the chart is powerful with a gapped up ER play, but turned out to be used for selling.
PCLN dropped from 144.34 down to 45.15.
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ER play should be careful when gapped up,and should be 1 day trading. With options, you can earn a lot, if gapped up big.
ReplyDeleteTiger
Thanks. nice chart.
ReplyDeleteTiger, thank you for bring up the pcln chart. This brings one of the TA puzzles I always have. Just like right now, we also went through a 2 month rally from Mar to May last year. So, from TA perspective, when you look at PCLN chart and market last may, you would be bullish. But, if you decide to go long and do a ST on pcln at that point, you could suffer a potential $20 haircut from early May to late June. My point is sometime TA maybe misleading, especially during the phase trend change.
ReplyDelete-wang
Wang,
ReplyDeleteTA works well. And sure you can make money via trading based on TA.
The beautity of TA is the same chart, the same pattern, could have different indications. So you have to be really good in TA.
Sometime, you have to put TA in a big picture to make it work well.
For PCLN, based on the chart, you should short it last May from 140 down to 40. I thought about this last May. But I didn't do it as I planned. a pitty.
Tiger