LPN : At key support, but in needs of a rebound above 8.2
February 15, 2011 Leave a comment
On Feb 8 we noted : “Although there are some in the market calling for a rebound in LPN, we have our doubts for the time being. Currently at 8.45, if it starts to print 9+ on the ticker, then we’ll get excited, but for the near term, another dip to 8.20 or so, if not the Jan 12th low at 7.95 seems at least as likely. We should also note that institutional buying is not strong yet, so if you are looking to re-enter, do so from weakness – at the 7.90-8.20 range
On the day chart below we can see the stock at a critical trend support – 8.00, after hitting 7.95 yesterday. If it fails to hold above 8.20 at the very least, then the risk of a deeper pullback to 7.30 or so will increase.
For those taking a punt from 8 or so, the odds are just about in your favour, but not by much.