Since you asked, Bret....
I think the uptrend is still intact. You can define a trend line by the lows of October 8, November 17, and December 17. LGTO is still on the upside of this line (though intraday January 13 breached the line). I find that for many stocks an Exponential 20-day average defines the bounds of a price envelope for technically good stocks. Again, LGTO is on the plus side of the E20 avg. The 50-day average is still up trending. All in all, the chart is decent.
Now for the other side.... except for a couple of days, we haven't been able to break resistance at $66. So maybe we're plateauing. I wouldn't put new money into LGTO until I see a $66 - $68 trading day.
And I gotta tell you that I did finally take my profits (about a week ago). I was using the two days near the end of December to define a support level at around $60 5/8. When LGTO couldn't break through $66 and then fell through this support (though minor support), I got out. I was comparing the end of December pattern with the end of September pattern and did not like the similarities. When LGTO died at the end of September, it lost $20 in a very short 4 days. Not wanting to see history repeat itself, I took the 'conservative investor' approach and sold out.
With a few more days of hindsight, I'd say I was too conservative here. As I said above, the uptrend is still intact. But there are a few elements of technical 'fog' obscuring the view. At this point, if you're in, hold on until the uptrend line is broken. If you're out, wait for $68+ to get back in (or for a pullback to $53 - $55).
I moved my money to QLGC.
Good luck, Bret. |
