Below is a brief recap on each of the top-volume, news-driven movers in Monday's after hours, taking a look at specific stocks' after hours movement and how that trade may offer insight into potential floor supports, ceilings and trading ranges that could develop in Tuesday's pre-market and early regular session.
Priceline.com (PCLN) advanced 2.3% at 521.07 in Monday's after hours trading after beating Q3 expectations but also setting its Q4 earnings view below Street estimates. PCLN surged to an early after hours high of 529 but retreated quickly into the red, dropping to a session low of 474.97. It firmed to still negative levels between 509.24 and 490.35 through the late first-half of evening action. The stock found upside support heading into the mid-session and second-half, rising to plus-side levels between 512.54 and 524. A pre-market open Tuesday may have potential in the 515 to 522 range. PCLN demonstrates an aggressive tendency to widen its next day share movement following an extended-hours earnings release, doing so for 23 of the past 31 quarters. In the near-term, the stock is also showing that pattern, widening its share move in three of the last four quarters. Looking deeper into the performance data, longs should be aware that PCLN has seen a positive extended-hours earnings-driven trade in 20 of the 31 quarters we've tracked, and in 16 of those upside extended-hours moves the stock has followed that trade with a more aggressive positive run in the next day's regular session, or 80% of the time. While the historical data bode well for PCLN longs, we would still be cautious on the shares as there was some aggressive sell liquidity that hit the stock at 520 and above, a potential near-term ceiling level to watch. Longs may want to target possible entry points between 510 and 517, an area that could form as a base support and perhaps see some attempts to break back toward 520, or just above.
Procera Networks (PKT) gained 14.9% to 13.60 in Monday's night trade after swinging to a Q3 profit, beating revenue expectations, and guiding for FY revenue above Street estimates. PKT firmed to plus-side levels between 12.75 and 13.38 through the early after hours. Buyers were aggressive off this base level, goosing PKT north from 13.35 to a session high of 14. It dropped back to hold upside levels near 13.50 to 13.70 into the second-half of the evening. A pre-market open Tuesday may have potential near 13.35 to 13.75. Buy liquidity was firm Monday night between 13 and 13.50, an area where a possible near-term floor support could form for longs to eye and where there may be room to catch upside turns back into the higher 13s.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.