downtrend, page-12

Morning Lockitt :)

Nice to have a civilized discussion. I don't see a cup and handle pattern for LGL, I'm afraid. Those usually have nice smooth rounded bottoms (like some people I know) for botht he cup part and the handle part. LGL's chart is all angles. There is a large inverse head-and-shoulders between Sept and Nov last year, then it changes to a top H-&-S between Jan and the start of April this year.

Since then, we have seen successively lower highs, and yesterday, the low (and the close) took out the previous low of 20th April. A bad sign, chart wise.

Most of the indicators are now showing a downtrend including the MAs. In particular, the ADX system (an indicator that I like a lot) is now showing an established downtrend with the ADX line - the trend strength - increasing. That is - the downtrend is increasing in momentum.

As I said, rather than watch my profits evaporate, I've sold all my LGL, but will be looking to get back in when it turns back up into a definite uptrend. But this may be some months away yet.....

Each to their own rules, of course, and the whole point of being on forums like this one is to have sensible discussions with differing points of view, so that we can all learn. :)