Levels to watch: 50 DMA- $519.98, 100 DMA -$507.59, 200 DMA- $507.59.
Support 1- $597
Support 2- $574.2
Support 3- $507.6
Chart Glance: rallied out of a major consolidation zone. Clean high volume breakout to new highs. Price action displays clear demand for current levels. The stock is in a clear uptrend. The $550 level was a resistance zone that PCLN struggled to get through.
After Earnings: PCLN CEO Jeffery Boyd stated, “PCLNs hotel bookings growth outperformed rivals.” Gross Margin has widened to 73% from 65.5%. International bookings were up %66 vs 55% forecast. PCLNs “name your own price” business model, was hurt by competitors “discount strategies.” Bookings predicted to slow down in quarters to come because of high gas prices cramping the consumer.
By Greg Zimny