The site has been silent due to travel and some family medical issues. Thank you for being patient with us. We at GTM believe in quality content over quantity and hope you do too. A story about a famous short seller using two rogue FBI agents to leverage small cap stocks will be published later this week. Stay tuned!
Here is a quick update on LDK’s recent price and volume action:
LDK Daily Chart
Last week we were interested to see if LDK could break the wedge and hold. It has done that and is now entering price territory the stock hasn’t seen since December of 2007. The yellow resistance line corresponds with the last swing high in May. At today’s gap open price tested back to this level then rallied. Volume has been increasing which is bullish and on-balance volume also has trended up showing new money coming into the stock.
We were anticipating profit taking near $48 (May swing high) which happened last Thursday and Friday. Today’s news further gapped the stock up. It makes us wonder if press releases are being timed to hold the new price trend, thus keeping price from testing the gaps. Last week’s trend is reflected by the blue line resting on $45.
LDK Weekly Chart
Looking at the weekly chart it will be interesting to see how LDK closes this week. As of today the candle is a perfect spinning top which points to indecision. Neither the bulls nor the bears have an upper hand. All things being equal, the vertical move is starting to look overextended and some traders are likely anticipating a retracement.
MarketClub Chart
MarketClub offers a great service, particularly for longer term swing trades. Their last buy recommendation was August 7th. If you bought on that triangle and held to the close today you’d be up 50%. Since LDK’s latest earnings release MarketClub has rated LDK +100, their strongest rating. Their proprietary trade triangles have not given a sell signal yet. Take a look and see if their product is right for you:
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