LEXG...j1, I'll defer to your dd on the fundamentals for now as you know far more about bios than I. The chart sometimes paints a different picture and is typical of what has attracted me to learn and experiment more with TA (not poolside anymore, unfortunately!).
I used to wring my hands and say, "XYZ is such a great company with such great products and backing and yet the price is going down...why?" TA ignores all that (because it's assumed to already be factored into the price) and simply says, "The price is going down because the price is going down." The exact opposite can also be equally true. Sounds obvious but we frequently miss the obvious (I still do waaaay too often).
That said, your LEXG broke its accelerated uptrend line during the first week of July at about 42 after reaching a high of about 47. Support at 35 held beautifully and it catapulted up to near 50, establishing a new uptrend line in the process. This new uptrend line was violated to the downside around July 24 at about 45 and it's been downhill ever since; stochastics turned negative from extremely overbought and macd finally began to deteriorate as well.
No new "buy signal" has been generated yet but (at 27 3/4) it's beginning to get close. Stochastics are now oversold, macd is now at a level from which it previously rallied, and it looks like there might be some support in the 22-26 range. If I already owned it I'd be inclined to hold it a little longer; a new buyer might want to be conservative and buy only on upside strength once the bottom is in (that could come at any time now that it is in oversold territory).
Last week LEXG played around in the 33-35 area for several days. If I had owned it I would have been tempted to put in a sell stop just below that little channel, maybe at 31 or so. Now, I think it'd be wise to wait a bit or even pick up a little more if support holds and you feel strongly about it. If support in the low-20's doesn't hold, I'd get out altogether and wait for the 10-15 range (that looks unlikely, however).
All of the above is only my opinion; I wish I could be of more help. I think you may have already weathered the worst of it on this one--Mark-- |
