This is a WEEKLY chart of Lumber Liquidators.
Take a look back. Notice the stock was rising from about March of 2012 all the way to March of 2014. It has been falling ever since (see the red downtrend line). You don't have to know why it's falling by the way. You just have to realize that it has been falling for a year.
If you think now is a good time to get involved with LL you should take note of the gray resistance / support line. It has arrows pointing to it.
There is a chance the stock will bounce higher around this level. There is also a chance the stock could consolidate around this level. And there is a chance the stock doesn't even take notice of this line and it just keeps going lower.
Personally, I would be VERY worried if the stock price drops below this 4 year old important level. Maybe you should be too...
Trade what you see. Not what you think, or hope, or feel, or ...
Protect Your Profits & Limit Losses
Take a look back. Notice the stock was rising from about March of 2012 all the way to March of 2014. It has been falling ever since (see the red downtrend line). You don't have to know why it's falling by the way. You just have to realize that it has been falling for a year.
If you think now is a good time to get involved with LL you should take note of the gray resistance / support line. It has arrows pointing to it.
There is a chance the stock will bounce higher around this level. There is also a chance the stock could consolidate around this level. And there is a chance the stock doesn't even take notice of this line and it just keeps going lower.
Personally, I would be VERY worried if the stock price drops below this 4 year old important level. Maybe you should be too...
Trade what you see. Not what you think, or hope, or feel, or ...
Protect Your Profits & Limit Losses