Priceline Extends 2-Day Winning Streak: A Technical Look
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Priceline Group Inc (NASDAQ: PCLN) shares were trading sharply higher by $19.00 (1.6 percent) at $1,168.83 in Tuesday's session. The catalyst for the rally is an upgrade from Stifel, which rates the issue a Buy with a $1,400 price target. The analyst attributed the recent weakness in the issue to European macro risk.
The timing of the upgrade comes at an interesting time in the issue from a technical perspective. Priceline, which had catapulted from its February 18 close ($1,122.99) all the way to $1,249.40 by March 2 off a strong Q4 beat, had relinquished nearly all of those gains when it reached $1130.86 on Friday, but recovered to close at $1135.19.
The issue had follow through to the upside along with the broad market and rallied to $1,149.83. Stifel's upgrade instigated a higher opening (Tuesday's open of $1,161.75) and after a brief pullback to $1160.50, the rally has continued.
At this time, it has found intraday resistance at $1,170.00, but has not backed off much from the level. The next identifiable resistance level in the issue stands at its March 25 high ($1,177.01).
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