Five Star Stock Watch: Priceline.com

Of the 28 analysts following Priceline.com's stock, 20 of them have it rated as a "buy." The median price target is $1210, while the stock is currently trading near $1200.

So, with the price of the stock having reached the median analyst target, is Priceline.com still a buy? If you don't already own the stock, is it too late to get in? As always, the chart tells the story.

Related: Five Star Stock Watch: Netflix

The company: Priceline.com, Inc.

Ticker Symbol: PCLN

Sector: Services   

Industry: Business Services

Priceline.com Incorporated operates as a online travel company. It provides hotel reservation services on a worldwide basis with approximately 275,000 properties in 175 countries and territories under the Booking.com and Agoda.com brands; and car rental services in approximately 6,000 locations worldwide through rentalcars.com name. 

Please take a look at the one-year chart of Priceline.com below with added notations:

Priceline.com has formed a nicely defined channel upward over the last eight months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance.  When it comes to a channel any three points can start the channel, but it’s the 4^th test and beyond that confirm it.

You can see that PCLN has multiple test points between the channel resistance and the channel support. Following the stock's up-channel can provide you with an entry point if you are not already in the stock, and a timely exit if you are.

Related: Five Star Stock Watch: Google

Priceline.com is set to release earnings on February 23, 2014.

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!