Today’s Big Stock: Priceline.com Incorporated (NasdaqGS: PCLN)

Priceline.com Incorporated (PCLN) is set to release its quarterly earnings report on February 27th. Although the price of PCLN is higher than the preferred range of most of our readers, the chart analysis of PCLN can still be very educational for traders.

Priceline.com Incorporated is a global online travel company that offers its customers a range of travel services, including the opportunity to purchase hotel room reservations, car rentals, airline tickets, vacation packages, cruises and destination services in a price-disclosed manner. It also offers its “Name Your Own Price” service that helps its customers to use the Internet to save money by allowing them to make offers for travel services at prices they set, while enabling sellers, which include many of the domestic hotel, airline and rental car companies, to generate revenue. It offers its customers hotel room reservations at over 150,000 hotels worldwide through the Booking.com, Priceline.com and Agoda brands. It offers customers the ability to make hotel reservations on a worldwide basis.

Please take a look at the 1-yr chart of PCLN (Priceline.com Incorporated) below with my added notations:

 

PCLN has been trading in a wide range throughout most of the year. During that time, the stock has been running into a clear resistance area around $550. As can commonly happen with stocks, PCLN has moved towards that important level again as earnings have approached. You can see how just as recently as last week PCLN tested the $550 level again as resistance. Will a strong earnings report give PCLN the lift it needs to break higher?

The Tale of the Tape: PCLN has a clear 52-week resistance level at $550. The company releases it’s earnings report on February 27th. If the stock breaks through the $550 resistance, a long trade would be advisable with a stop placed below $550.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Today’s Big Stock: AuRico Gold (NYSE: AUQ)

AuRico Gold is a mining company, which also engages in the exploration for, and development of, gold and silver deposits in Mexico. Through its subsidiaries, Aurico owns and operates the Ocampo gold-silver mine in Chihuahua State, Mexico, and the El Cubo gold-silver mine in Guanajuato State, Mexico, both of which are producing gold and silver. Through its subsidiaries, Aurico also owns the Guadalupe y Calvo gold-silver exploration project in Chihuahua State, Mexico, and leases the Las Torres gold-silver mine in Guanajuato State, Mexico, which is also producing gold and silver.

Before discussing potential trading opportunities, please take a look at the 1-year chart of AUQ (Aurico Gold, Inc.) below with my added notations:

First, AUQ was holding a very important level of support in the area of $9 (navy) from April until December. In December, AUQ broke below that $9 support level and fell lower as one would expect.  After bottoming close to $7, AUQ rallied back up to resist that $9 (red) level January. Finally, AUQ broke back above $9 towards the end of January.

The Tale of the Tape: AUQ has had a very important level at $9 since April. If the stock were to approach that level again, a trader could enter a long position with a stop under that level. If AUQ were to break that support, a short position could be made with a stop above the $9 level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Today’s Big Stock: Thermo Fisher Scientific Inc Co (NYSE: TMO)

Thermo Fisher Scientific Inc. is engaged in serving science. It provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through two segments: analytical technologies and laboratory products and services. Analytical technologies segment includes pharmaceutical, biotechnology, academic, government and other research and industrial markets. Laboratory products and services segment offers combination of products and services that allows its customers to engage in their core business functions of research, development, manufacturing, clinical diagnosis and drug discovery.

Please take a look at the 1-year chart of TMO (Thermo Fisher Scientific, Inc.) below with my added notations:

 

The main level to pay attention to with TMO would be $55 (navy). As you can see, $55 was a very strong resistance from August through October. Next, if TMO were to climb higher, the previous support of $60 (green) would be an expected resistance. Lastly, if TMO were to fall below $55, the previous level of $50 (purple) might come back into play.

 

The Tale of the Tape: Now that TMO has broken above $55, that level would be expected to act as support. A long trade could be entered on a pullback to that $55 level with a stop placed below $55. If the stock were to continue higher instead, a short trade could be made at $60 or a long trade on a break back above $60. Finally, if the TMO were to break below $55, a short trade could be made and then a long trade could be made at the $50 level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Today’s Big Stock: Stone Energy Corporation (NYSE: SGY)

Stone Energy Corporation is an independent oil and natural gas company. The company is engaged in the acquisition, exploration, exploitation, development and operation of oil and gas properties located primarily in the Gulf of Mexico. Stone Energy is active in the Appalachia region and has development operations in the Marcellus Shale. As of December 31, 2010, the company’s estimated proved oil and natural gas reserves were approximately 473.9 billions of cubic feet equivalent. During the year ended December 31, 2010, the Company acquired an approximate 26,000 net acre leasehold position in Appalachia.

To review Stone Energy’s stock, please take a look at the 1-year chart of SGY (Stone Energy Corporation) below with my added notations:

SGY had created a couple of short-term price levels over the last 2-3 months. First, SGY had formed a clear resistance at $30 (navy). In addition, the stock was climbing an up-trending support level (blue) during that same period of time. These two levels combined had SGY stuck within a common chart pattern known as an Ascending Triangle. Eventually, SGY would have to break one of those (2) levels. On Friday, SGY broke out above the $30 resistance, which should signal higher prices for the stock.

The Tale of the Tape: SGY recently broke above its $30 resistance. This level should now act as support if the stock pulls back. A long trade could be made on a pullback to the $30 level, with a stop placed under that level. A break back below $30 would negate the forecast for a move higher and a short trade should be considered.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT

Today’s Big Stock: Chevron Corporation Common Stock (NYSE: CVX)

For today’s article I will be focusing on a stock that is approaching a 52-week high again. As a reminder, when it comes to a stock hitting a 52-week high, I prefer to look for ones hitting a “NEW” high. To me, his would be a stock that hasn’t hit a new 52-week high in quite some time. In addition, and more importantly, I want the stock to have broken through a key area of resistance. This way I know that it wasn’t just any move higher, it was a key breakout.

Chevron Corporation manages its investments in subsidiaries and affiliates and provides administrative, financial, management and technology support to the United States and international subsidiaries that engage in petroleum operations, chemicals operations, mining operations, power generation and energy services. Upstream operations consist of exploring for, developing and producing crude oil and natural gas; transporting crude oil by international oil export pipelines; transporting, storage and marketing of natural gas, and a gas-to-liquids project. Downstream operations consist of refining of crude oil into petroleum products marketing of crude oil and refined products.

To review Chevron’s stock, please take a look at the 1-year chart of CVX (Chevron Corporation) below with my added notations:


 

CVX has been trading mostly sideways for most of the entire last year. During that year, the stock has been running into resistance at $110 (navy). Even after a strong sell-off in July, the stock has worked its way back up to that $110 level a couple more times. The $110 resistance meets my definition of a clear resistance level that would signify an important 52-week high breakout if CVX could manage to break above it.  If the stock does break above the $110, it would probably be heading higher, most likely on a new uptrend.

The Tale of the Tape: CVX has formed a key resistance level at $110, which would be a 52-week high breakout if CVX could break above it. A long trade should be entered if CVX breaks above $110, with a stop set below that level.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade.  Capital preservation is always key!

Good luck!
Christian Tharp, CMT