>Anything new on this thread is a blessing.
That's my cue:
Last week I asked about the warrants and Henry was kind enough to supply the necessary information without my having to look all over the www. After agonizing over whether to buy the stock or warrants for 4 hours, I went on-line with Schwab and bought the warrants. My reason was that I already owned a core LGND stock position from 1995 (thanks to Henry on Prodigy) and this new purchase was more or less a "trading" position, so I went with the slight leverage advantage.
Why a new trading position now?
Bearish Signal Reversed. This is a Point & Figure chart pattern where prices are carrying lower, producing lower lows and lower highs indicating that the sellers are controlling the direction of prices. This pattern goes back to the high last October and is nicely symmetrical all the way to the end of January. Then in the first week of February, the pattern was broken with a nice move making a new short-term high. This was a text book P&F BUY Signal.
In this case, not only the prices make a new short-term high at 13 1/2, but it broke a double top and went on to break through the downward sloping bearish resistance line coming down from last October's high around 18. Using a vertical count, Point & Figure analysis projects an initial objective of 26, with a stop about 11. Wait there's more.
I also use Elliott Wave analysis, as per Advanced GET software. Here, the five wave decline from last October made a new low at 10 7/8 on January 29 that was unaccompanied by new lows on the Elliott Oscillator (a sort of modified 5/35 MACD). Then the rally in early February to 13 broke the downward sloping trend regression channels declining down from last October, thus constituting a BUY SIGNAL, targeting the mid-20's for the move. Stop on this pattern would be about 12 or so.
Hey, you asked for it, remember, "Anything new on this thread is a blessing."
Allan,
King of France |
