LPN : Possibly running ahead if itself. Big barrier at 10
June 25, 2011 1 Comment
On March 22nd when LPN was trading at 10.30-10.50 we said a dip to 9.2 or so was imminent. The stock did come down and spent a week below 9.2, but now faces a major test in days to come at the 9.90-10.10 range. This range may be hit and temporarily surpassed, but it will only be cleared if there is a very good outcome to the election.
Some brokers think it’s a top pick for a PT victory, but the danger in the market is t0o high to buy high now. Better buy higher still or wait and see, because a period in a political abyss could kill its short term prospects and indeed price.
On a medium term basis, a breakout above 10 on a good election outcome will place 12 as our swing target, but a bad election result will likely see it hit 8 if not a good few percent lower.