A chat room denizen seemed concerned that PCLN was getting sacked Monday in after-hours trading. As you can see, however, the shakedown — and that’s what it is — has not even broken the bulllish trendline from mid-June’s low. (Note: the green bars represent after-hours price action.) This evening’s so-far low represents a $13.50 discount off Monday’s settlement price, but it’s possible the dirtballs who created this air pocket have even more ambitious theft in mind. If this proves to be the case, look to do your bottom-fishing at the 1189.93 target shown. I’ve set an alert myself, since the target may provide an opportunity to leg into a vertical bull call spread if the stock bounces from the pivot as we might expect. _______ UPDATE (July 16, 12:07 a.m. EDT): The 1189.93 target remains viable in theory, but it must be noted that bears struggled too hard yesterday trying to take this wind-bag lower, even after DaBoyz had sandbagged bulls on a revved up opening bar. _______ UPDATE (July 16, 6:12 p.m.): The nasty head-fake on the opening bar was bullishly impulsive nonetheless, so traders should use this pattern on the 60-minute chart to project a follow-through rally target: A=1219.16 on July 15 at 11:30 a.m.: B= 1243.26 on July 16 at 10:30 a.m.; C=still undetermined, but tentatively 1223.00; a move below 1219.16 would negate the pattern. Alternatively, a move lower could evince a tradable bounce from 1218.02, the midpoint support, on the hourly chart, of A=1258.66 on 7/7._______ UPDATE (July 18 3:02 a.m.) Wednesday’s very nasty head-fake altered our point ‘C’, raising the correction target to 1192.77. This Hidden Pivot may prove useful for setting up a ‘jackpot’ trade using expiring options.
