LC Chart Jan. 05, 2012

I’ve been hearing and reading a lot of opinion regarding LC/b’s price movement. Since this stock issue has become one of the market’s favorite, I thought of sharing and giving my views as well. So far almost all analysis I’ve had read are right. Everything just depends on the time horizon one is looking at.

Scenario A: Uptrending Triangle Formation

Bull Camp is saying that LC is in Uptrend Channel and that we will soon see a break above 1.81 and that price will initially be targeting levels between 2.18 to 2.26. Time frame of wait will be shorter.

Note that under this theory, LC is still expected to retrace back to “Minor Descending Triangle” previous breakout point level seen at 1.57. Normally healthy retracement doesn’t lead to touching 1.57 but instead price is seen to hover above it before resuming an upward movement.

Scenario B: Ascending Triangle Formation

Bear Camp on the other hand is saying that LC is completing an Ascending Triangle formation and that price is seen to break below 1.58-1.54 (Point A) and move lower, towards the lower boundary of the pattern which is between 1.40-1.40 levels. Once pattern is completed, LC is seen to resume its uptrend move and will initially retest 1.74 resistance level. It probably will then eventually break above the 1.81 upper boundary of the ascending triangle formation in due time but this will really take a longer time to complete.

Personally am neither pro-bear nor pro-bull. I am pro PRICE ACTION. The deciding factor will be the 1.58-1.54 support line. THIS WILL BE THE FINAL ARBITER POINT WHICH WILL DECIDE WHO IS RIGHT OR WRONG. As long as price moves above this level, the 2.18 to 2.26 short term target will remain viable. On the other hand, if 1.58-1.54 level breakdown, then my holding time analysis target will change from shorter to much longer wait period with possible testing of support seen between 1.44-1.40 levels.

ALL BETS ARE OFF IF 1.38 LEVEL BREAKS.

Layman’s Definition:

Retrace/Retracement means pull back.

Resistance means a level or a price point where majority of sellers are seen to converge.

Support means a level or a price point where majority of buyers are seen to converge.

Breakout/Break above means a price move above a resistance.

Breakdown means a price move below support.

Bullish/Bull means to have an optimistic, positive view on price action. (Anticipating further rise)

Bearish/Bear means to have a pessimistic, negative view on price action. (Anticipating further decline)

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.

LC Chart Nov. 18, 2011

Based from yesterday’s trading, LC showed a breakout from a triangle formation at 1.33 (letter E) level. What it means is that the stock has shown a potential for the price to move even higher.  But in order for this potential to become valid, the stock price has to hold above 1.33 therefore becoming also a point where stock support will be seen in case stock price pulls back.

If 1.33 ( letter E ) level holds on pullback then the  next possible resistance target to look at will be between 1.47 to 1.52 (letter F) levels then followed by 1.61 to 1.66 (letter G).

On the other hand if 1.33 fails to hold, then LC will be expected to go back to its original consolidation range where it use to trade. These borders are 1.33 (upper – letter E)  and 1.24 (lower – letter B). Initial support point below 1.33 will be at 1.30 (letter D) followed by 1.24 (letter C).

A further break below 1.24 means a possible retesting of levels found between 1.14 to 1.15 (letter A) which will not look pretty in the chart.

In summary, watch 1.33 closely…Bull above and more consolidation below it.