1. Monster gap higher on earnings brought the stock above 1200 and it held those elvels. New support was found and it drifted all the way up to about 1350.
2. After chopping around into the next earnings date, PCLN gaps down on earnings and runs into that support level established from the previous quarter. Failure to find followthrough tells us that there are willing buyers.
3. A few weeks ago, the stock goes parabolic into resistance. It starts to fade. The momentum bar at 1300 hold and the stock starts to look constructive again.
4. We’re now back at the resistance levels, but more energy has been built into the stock.
5. There is a gap at 1,450 that will most likely act as a magnet.
Now there are going to be a dozen different ways to structure your risk here. PCLN has large price moves and the option board has a ton of strikes. I prefer to keep it a little more conservative because this market has been choppy and positioning for big upside hasn’t worked that well.