There is a previous low at $2.62 for support. Currently we are at crossroads of 2 supports, one a rising support from 1st July 2010 with numerous touches, and a downslope line from 14th Feb 2011. My call before hand is we are at a level where numerous indicies are at a tipping point, helped by Greece uncertainty. The market is oversold, but bottom not yet confirmed, and this is the risk. There are good arguments for either side as to where the direction is likely to go.
Rather than sell near a possible bottom, I see a limited risk entry at the cross of the 2 support lines, approx $2.89 . An entry at or near there, with a short stop loss of $2.85 if support does not hold, has a minimal risk loss for a possible bounce from support upside. My preferential trading entry point is near support lines with short stops below support, to gain benefit of bounce off supports, and conversely shortening my holding near resistances.
I am in for some traders at $2.90.
LNC Price at posting:
$2.92 Sentiment: Buy Disclosure: Held
