AnneTrader
Long

LM on a bull wave up

NYSE:LM   LEGG MASON INC
LM             reached a high of $140 in 2006 before plummeting to almost $10. Since then we have seen price bottom out (forming a cup and handle on the weekly chart) and begin a bullish wave up. During August and October a double bottom formation occurred - confirmed in November with a break of the neckline.

The weekly double bottom presented itself on the daily chart as a small consolidation - the 50ma was flat and price hovered around the $50 half-figure. This consolidation lasted over four months, but was not too deep so the breakout at the beginning of November was an early chance to buy into this stock .

The more cautious would want to wait for a small pullback. This occurred with the bullish flag confirmed yesterday (13th November). There is no resistance ahead for some time ahead ($80 is the next major pivot point ). Overall, a strong buy candidate for the watchlist.

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