I actually had this one in a watch list thinking it would test the 200ma and continue. Who would have thought -60% in 5 days... Anyone would think it is a spec stock.
It has, along with a few others lately, prompted me to look into false breakouts, this one closed above the resistance after a good volume up day before hand, and later reversing dramatically. What does everyone use to determine the likelihood of a strong breakout before it happens? LKE had weak moving averages i.e. 13 and 65 were negative etc. MACD's on both time frames were not great. Is it simply setting a strict set of criteria that must be met at all times before taking a trade? I.e. must be above 200ma.
Interested to hear every ones thoughts on false breakouts.
