Suggest some caution here. Over 3 days we have retraced 61.8% of the Mar 7 to Mar 14 decline (6 days). Today is important for LNC's future direction imo. On the positive there were three good candles in the retrace. However, the candle last (Friday) was not that impressive with a close half way up the range on half the volume of the previous two days. As would be expected, price > 5 day moving averagea which is good.
LNC needs to get to $3, otherwise we have a lower high. Note that a MACD negative divergence exists. ie Draw line across the three triple tops of price (at $3) and similarly across the tops of MACD. The price line is flat and the MACD line is falling. The first attempt at $3 in Dec was the strongest with the greatest momentum and strength of trend. The second attempt in Feb was weaker and the third attempt in March was the weakest. Other indicators also confirm negative divergence.
LNC has had lots of positive news flow lately, but has range traded rather than responded positively. My guess is that a coal sale will be required to get thru $3.
I'm 95% cash (have been for about a month). Dont like the macro developments world wide. I agree with TimmyJuly's post and would add a big market direction factor will be whether QE2 is replaced. All talk so far indicates otherwise.
Good luck to all regardless of your choices.
Cheers Bleasby
LNC Price at posting:
$2.78 Sentiment: None Disclosure: Not Held
