Hi Yotta,I'm a faithful follower(lurker) of your's at the xjo...

Hi Yotta,

I'm a faithful follower(lurker) of your's at the xjo thread (both your TA calls and poems). I didn't realise you post on the stocks as well until now. When a person, whom I respect much for their views, posts on a stock that I'm also interested in with recent price action, I thought I'll be happy to show my ignorance, for some learning purposes. I did a post on LEI at the charts thread, but it seems that not much of discussion being going on. So I thought I'll repost the same with few minor changes to suit LEI thread. Hope to get some sort of a feedback/discussion. This post is based on my little understandings and just my opinions. So will be happy to correct myself, if there is any form of fault in the following presentation.

First point is it went XD on 9/3/12, so what i'm looking for is current stock level and any support level that is going to come up in the next 2-3 trading days. I hope many would remember when DOW dropped like 200+ points in last week, I did buy into LEI at 24 on the next day when ASX also dropped like 1.5%. MY thought process is 1)that LEI does provide good intra day spreads (one must have some good luck in trading LEI btw) 2) it goes XD in next couple of days so some form support or buying should come through next day. I bought LEI during my smoko and checked at my lunch time it was up by 80c so sold it at 24.80. When it went XD, to my amaze the sp was still holding at about 24.10 during my smoko, i.e. it did not even drop to the div. amount. Somebody must have forgotten something or for any other strange reason, but I didn't buy it at that time, as it looked bit suspicious. Again checked during lunch, by that time those someone wokeup to their mistakes and the sp was taken down by 81c by the COB. Anyway, I think the sp might do some three point thrust thing and may find support at ~22.7-22.4 for short term long entry option (reasons in the chart), if its going to go lower for the next couple of trading days.
Lets look at the weekly first.

What we see is a slightly higher low of 16.8 (which is also a double bottom) on 23/09/11 compared with the low of 15.8 on 23/01/09. That is about 973 days / 139 weeks apart. If any cyclic or numbers guys/gals reads this post they may be able infer the significance of those cal days. One can also see a gap at ~$28-$25 on Apr'11, which is kind of acting as a resistance to the current price action (one can clearly see in the daily chart). Also note that the current price is above 41 ema, which is at 22.75, which may provide some form of a support if the sp keeps grinding lower. I have also marked a range of ~$21, which LEI is prone to do, as one can see from the past actions, which gives us a target of $37.5. The immediate resistance level I could see is at about $27.5-28, where there is a gap in the past and also where 195 weekly ema is also coming along.

The next chart is a daily one, which shows the gap at 28$ as mentioned before, but more importantly the crossing of 41ema and 195 ema.

One can also see a horizontal support level at 22.45, so if the price gets to that level in the next 2-3 trading days, LEI might provide a good trading opportunity for the long side.

Good luck all, if you are holding.

Regards
PMT