This year has been a blockbuster one for Priceline. Shares of the $48 billion name have rallied more than 50% since the calendar flipped over to January, coming to within grabbing distance of the $1,000 per share level along the way. That momentum should play a big role in PCLN’s upside ability for the rest of the year.
But why, exactly? And by how much?
We have our own opinion about it. And according to our analysis, this stock can move big in the next few days or weeks.
It’s currently sitting at around $950 but we think it is about to move 20-30 points – just look below. The Bollinger Bandwidth is telling us that its range is too squeezed and it’s about to expand.
That’s the tough one to answer. But looking at the MACD (bottoming), CCI/RSI (moving up) and VTX (green), our hunch tells us the big move is up. The last time the BB was that squeezed in early August, the stock moved about 35 points. We are long the stock as of today (though some call options) looking to sell at around $980 within a few days (or $1,000 within a few weeks). We’d get out of the trade if the stock drops below $935.
Update (Sep 10th 2013): As of now, less than a week after we first recommended the stock, it is trading at $977… we are looking for $985 soon, and perhaps $1,000 by October or so.
Update (Sep 20th 2013): I guess we were right. The stock is trading at about $1,000… sooner than we expected. For this reason, we are closing all of our long positions.