Tuhi_Capital

Luckin Big Trouble - Chart Tells Us Everything We Need to Know

NASDAQ:LK   None
- Currently in a trading halt. Still operating stores in China.

- Chinese company which has been accused of manipulating their financial reports.

- This is lesson to keep in mind - there is indeed a higher operational and fraud risk in Emerging markets which needs to be managed. This is why technical analysis is also so important. Luckin dropped out of its main trend - pitchfork and gave investors some idea to get out. It easy in hindsight to see this but that is why we strongly believe in trend and momentum analysis.

- The parallel lines have identified the bottom very nicely and also set the scene for possible future price action if the trading ban is lifted.

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