mon trading

LNC has been one of my best swing trade since the breakout of 80c to high of $3 and all the way back to $1 again.

I generally hold very short time frame, mins to hours, all in one day for LNC. I don't hold LNC overnight as this stock is very volatile.

I've made some decent profit trading both long and shorts using CFD. 90% of my gains is via shorts with max profit in the first 10mins of opening. A few key themes with LNC:

1. Trade on intraday breakout or breakdown from a trading range.

2. Opening bid is critical - generally in a down trend if gap down it's best to short it, i.e. at the moment LNC is clearly in both long, med and short term down trend.

3. LNC can shoot up in a space of few days with gains of 50% or more as seen in past few breakout. So shorters beware as news regarding the farmout wouldn't be far away.

IMO, here's how I'll trade Mon:

1. SPI is ~33 points low. If LNC gap down on open, I'm shorting it (it is almost certain LNC will gap down on Mon). Likely open ~$1.06. Next leg is interesting as LNC may go down further or move up slightly to touch $1.11 before resuming further down towards $1 for Mon trading session.

2. I have a full short cover of $0.98 which is where I'll be covering my shorts, and also half profit ~$1.01 as $1 is always the congestion zone.

Mon is definitely a short day given on Friday when XJO is 90+ points up only a handful stock including ASX and LNC are trading lower. This is generally not a good sign.

Looking for a sharp downwards movement towards 95c before a reversal candle formed either Mon or Tue for short term uptrend.


cheers
pcyc