(Click chart to enlarge)

(Click chart to enlarge)

Priceline failed to break out of this wedge and has since been a really nice short.  On the 5 min chart, it becomes clear that even the smallest rallies have been sold, and gap downs have not been closed.  On the daily chart, priceline has a rising t/l which should act as some support in the 660/665 range.  Stochastics indicate that there should be more downside short term.  674 is the next support level, below that and I think that t/l could be reached rather quickly.  I would not be long this stock until a solid break above 700 (descending t/l on 30 min chart)

Option activity:  The OI on the puts far outnumber that of the calls.  Mar 22 680 calls have an open interest of 9, 680 puts have 475.  Mar 22 685 calls have 21 contracts in OI, puts have 228.

My game plan for priceline is to short any intraday pops that show overbought signals on the 2 min chart.


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