Ready To Push To New All-Time Highs

Courtesy of the ‘no taper’ decision by the Federal Open Market Committee yesterday, Wednesday September 18th, US stocks rallied hard, taking many to fresh all-time highs.  One of the high beta stocks that also followed suit is Inc (PCLN), as it squeezed to a new all-time high after holding its medium-term up-trend in place over the past few weeks.

On August 13th I last discussed the state of the stock price of Inc (PCLN) HERE.  In specific I discussed that after the vertical leap and up-gap from August 9th, this was not a stock that I would chase at the time.  What I foresaw was the stock consolidating back toward its breakout area near $935, which would then allow it a better chance to move to a new all-time high.  For the most part, that’s exactly what happened in the mean-time.

Before looking at the close-up chart though, note that the stock price of Inc (PCLN) formed its previous all-time high back in April 1999, at the $990.00 level.  You can see my 13 year chart of the stock HERE.

On the three year chart of the stock, note that while choppy at times, the stock does hold true to its major trend lines, and not until its latest and rather steep up-trend line dating back to May 2013 gets snapped would I consider trading this stock from the short side.  The trend (up, for now) remains our friend as market chasers, trend followers, and some that are looking for a thrill continue to play this stock from the long side.  I would be remiss however if I didn’t point out that a high beta stock such as Inc (PCLN) has the potential to quickly reverse course.  So, please tread carefully.

PCLN multi year chart

On the close-up chart of the stock the only thing I can point to is Wednesday’s break to a fresh all time-high as the stock is now in uncharted territory.  As such I don’t see anything particularly bearish at current juncture but will just say that for those riding the wave and playing the long side of Inc (PCLN), any one day bearish reversals should be respected.



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