Shares of The Priceline Group Inc. (PCLN​) fell nearly 7% on Wednesday after the company reported second quarter financial results. Revenue rose 18% to $3.02 billion – beating consensus estimates by $30 million – while net income of $15.14 per share beat consensus estimates by 94 cents per share. However, the company's third quarter guidance – targeting earnings per share of $32.40 to $34.10 – fell short of analyst estimates calling for earnings of $34.14 per share.

The world's largest online travel company has grown pre-tax profits at an enviable compound annual rate of 42%, which is faster than Apple Inc. (AAPL), Amazon.com, Inc. (AMZN) and Alphabet Inc. (GOOG​). Over the past year, Priceline stock has risen about 35% compared with just 13% for the SPDR S&P 500 ETF (SPY) as the company handily beat estimates during the first quarter. Third quarter guidance may have been on the low side, but then again, the firm has a history of earnings beats. (See also: Priceline Q2 Earnings Beat Estimates but Stock Falls.)

Technical chart showing the performance of The Priceline Group Inc. (PCLN) stock

From a technical standpoint, the stock rebounded from its 50-day moving average in early July toward R1 resistance at $2,102.94 before the second quarter financial results sent shares below the 50-day moving average at $1,923.62 to trendline support levels. The relative strength index (RSI) moved sharply lower to oversold levels at 35.93, but the moving average convergence divergence (MACD) experienced a bearish crossover.

Traders should watch for trendline resistance to hold just below S1 support at $1,985.07. If those levels are breached, the stock could move down to trendline support at $1,800.00 or S2 support at $1,761.64. A rebound from trendline support could send the stock back up to retest its pivot point at $1,969.51. Traders should maintain a bullish bias on the stock given its solid performance and recent price trends, but longs may want to have a tight stop in place. (For more, see: How Priceline Group Makes Money.)

Chart courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

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