LGF - Go Long?
Moniker: AD
Symbol: LGF
[X] Entry
Duration: Long Term
Direction: Go Long
Comments: Another one I have owned/traded for years. Lots of big green volume bars over the past few months makes me think this could break topside, depending on earnings of course. Too risky here or do you share the thought?
LGF is in the entertainment sector. I've pulled up a multiyear weekly chart and what bothers me here is that we don't see any conviction with volume as it tests the old highs.
I would wait for this one to prove itself and break above those highs on volume and then catch the retrace rather than stepping in front of uncertainty without conviction being shown so far.
Symbol: LGF
[X] Entry
Duration: Long Term
Direction: Go Long
Comments: Another one I have owned/traded for years. Lots of big green volume bars over the past few months makes me think this could break topside, depending on earnings of course. Too risky here or do you share the thought?
LGF is in the entertainment sector. I've pulled up a multiyear weekly chart and what bothers me here is that we don't see any conviction with volume as it tests the old highs.
I would wait for this one to prove itself and break above those highs on volume and then catch the retrace rather than stepping in front of uncertainty without conviction being shown so far.
posted by Tat | 4/20/2007 05:43:00 AM
2 Comments:
"Ah, I see..." said the blind man. Thanks for pointing that volume divergence out. I was focusing on the relative up/down volume over the last 6-10 months. I wonder though, how much influence past price and volume have the further away in time you get.
Volume and price remain important several years back. You just look at them a bit differently. When I got back years I switch to weekly and monthly charts to look at the relative volume/price. You'd be surprised how many folks will hold a stock for years to "get out at even". That supply just hangs around until price comes back.
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