LC Chart Dec. 07, 2011

The last time I made a comment on LC was in my newsletter issue dated recently on December 5, 2011. In that newsletter I specifically stated that LC will fail to break above 1.82 (letter E) on its first attempt and will pullback. Well today, I have decided to do a follow through analysis based on that statement I made.

The chart above clearly reflects a failure to break above 1.82 level (letter E) which is the recent high made last Aug. 8, 2011. After touching 1.80, the stock fell towards 1.65 and closed at its low. I believe that LC will undergo a consolidation from here on wherein stock price is expected to trade in a narrow range.

This is better seen on the chart above, drawn with a possible symmetrical triangle pattern (denoted by letter A and B Blue lines) forming. The lower border of the triangle formation mentioned will be seen at 1.62 or 1.59 level (support, letter A) while the upper border will be seen between 1.76-1.74 levels (resistance, letter B).  These will be your buy and sell points.

The next move after consolidation will be the most important to watch. It will determine where future price of LC will be heading.  A break above the upper border line of the symmetrical pattern will mean a possible minimum target of 2.0 (letter C) while a break below will result into a price drop of as low as 1.40-1.46 levels (letter D).

Note that all the resistance and support levels presented here are also all connected with the previous chart study I made last Nov. 18, 2011. As such, every-time a resistance is broken they automatically become a support and vice versa.

Personally, I think the price will remain above 1.59 level as it consolidates but be sure to be ready to cut just in case price falls below it on closing.

Kindly disregard above’s analysis and wait for an update. Price did not go into consolidation but rather moved different from what was expected. It warrants another analysis. For trading decision refer to PACS price level.