Heheh :) Hi Lockitt :) I'm always up for some friendly banter.
"One swallow does not a summer make" is the quote that immediately springs to mind. Don't forget a downtrend is defined as a series of lower highs and lower lows. In other words, there will be up days as well as down days.
Going PURELY on the chart, LGL has breached its support from mid-April, and the next support level seems to be about 2.44 from January.
The downtrend is established, but still quite weak as far as trend strength goes. So yes, it COULD turn back up, but working on probabilities (which is what TA is all about) the most likely scenario is for the gentle downtrend to keep heading down. Perhaps 2.44-ish for next support, and if it falls through that, then around 1.60 would appear to be the next stop.
Of course, as with any stock, an appropriate announcement could spin it around into a roaring uptrend. But HOPING for something like that is not really smart trading or investing.
The money I took out of LGL, which included a significant profit, has already made some nice gains as I've traded a couple of other stocks using that capital. So I'm happy with my decision. And yes, I do think LGL is a good company, so once the market sentiment turns around and starts back into an established uptrend, I'll be back into it as an entirely new trade.
All comments to be taken with large salt grains, as they are my 'umble opinion only ;) Usual disclaimers, make own decisions, etc etc blah blah. :)
LGL Price at posting:
$2.79 Sentiment: Sell Disclosure: Not Held
