LII bull flags confirm break above $100
LII is a low volume stock but one which is beginning to show signs of trending well since breaking above the 200ma in October 2014.
At that time there was major resistance ahead with price trading below the March 2014 pivot high ($94.69) and the $100 figure. The March high proved the more difficult to crack with price hanging around the $92-$97 zone for several months. Clearing $100 was more straightforward - although there were a number of indecision candles (doji in the main) just above this level.
There was no particular retest of either $95 or £100 so longer-term trend traders would have to wait for further confirmation that the uptrend had continued momentum. The two recent bull flags have given such a signal and a buy position could well provide good profits.
The one point of note here, however, is that in the previous bull trend (shown on the weekly) the pullbacks were pretty deep. So far the latest trend is proving to be more linear - but patience and wider stops may be needed to successfully trade this stock.
At that time there was major resistance ahead with price trading below the March 2014 pivot high ($94.69) and the $100 figure. The March high proved the more difficult to crack with price hanging around the $92-$97 zone for several months. Clearing $100 was more straightforward - although there were a number of indecision candles (doji in the main) just above this level.
There was no particular retest of either $95 or £100 so longer-term trend traders would have to wait for further confirmation that the uptrend had continued momentum. The two recent bull flags have given such a signal and a buy position could well provide good profits.
The one point of note here, however, is that in the previous bull trend (shown on the weekly) the pullbacks were pretty deep. So far the latest trend is proving to be more linear - but patience and wider stops may be needed to successfully trade this stock.
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