|
|
|
home » small cap highlights
Tony Golan
Chief Technical Analyst
StockProfit.com™
 Zoom
This week I chose to highlight the chart of Legend International Holdings, Inc. (OTCBB: LGDI). LGDI is starting a powerful new long-term up-trend. The stock is now making higher highs and higher lows well above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is way above the 25% threshold line, indicating that LGDI is far outperforming the S&P and should therefore remain strong and continue trending higher.
LGDI spent much of the past year in a long-term sideways trend, swinging above and below the 200-day moving average without sustaining movement in either direction for very long. That changed in late February, when LGDI picked up and pace and started trending higher from the 1.50 area. Last Monday, LGDI hit a new high of 5.05.
With LGDI up so much in the past couple of months, it would be prudent to wait for a pullback before establishing new positions. If LGDI corrects mildly and slowly, it will likely provide a low-risk, high-probability entry opportunity. If it drops sharply, it will be less likely to then turn back up and rally to a new high, which would negate the reason for buying it.
For now, keep an eye on LGDI simply by virtue of how strong it has been and how it has trending up in the past couple of months.
Tony Golan
Chief Technical Analyst
Disclaimer: Copyright© 2008 StockProfit™. All rights reserved. StockProfit™ is an independent electronic publication providing information on select public companies. StockProfit™ is not a registered investment advisor or broker-dealer. There is a risk of loss in all of trading. Past performance is no indication nor guarantee of future results. The information contained herein is believed to be accurate.This update is provided as an information service only, and the statements and opinions in this update should not be construed as an offer or solicitation to buy or sell any security. In no event shall StockProfit™ and/or its publisher, P.A. Relations or any of its employees or affiliates, be liable for any direct, incidental, consequential, indirect or punitive damages whatsoever arising out of the use of the Information, or for any errors or omissions in the content thereof, including, but not limited to, from any investment loss, damage or expense incurred by any investor resulting from the Information, or from the purchase or sale of any profiled company or any company which we make commentary. We recommend using good-'till-cancelled stop orders to minimize losses in the event of an adverse price movement. We have not been compensated by company(ies) mentioned above in any way. We do not hold any positions whatsoever in the above mentioned company(ies).
|
|
