Priceline (PCLN, $998.13, off $43.55). Fibonacci timing cycles were good about warning us of an impending cycle high with PCLN around 9/30-10/3. You can see these cycles on the daily chart below. The actual high was made on 10/3….but NOW WHAT??
Now that we are finally seeing a healthy correction within the larger uptrend, I want to point out 3 areas for possible support. The first one we are currently testing at the $979.56 – $984.61 area. Now I don’t want you to take ANY trades against these zones unless you see a buy trigger!! For information on using triggers for your trades…please refer to the guidelines that suggest how to use my work!!!
If you do start seeing a buy trigger against one of these areas, I would consider a bullish options strategy as long as the risk is limited. Perhaps a vertical spread. PCLN has weeklys and extended weeklys. If PCLN triggers a buy near $985, maybe the November (11/1) 995 – 1125 bullish call vertical spread for a ~$9.25 debit might work. These are scary times and we don’t need to take huge risk by buying high implied volatility options outright if we use spreads!! CB