Lumentum Holding stock price fell sharply earlier this week as market sell-off resumes. Where, price fell to test key support level as seen in the chart. In which, price bounced quickly bounced from this level. Nevertheless, price could fall lower to test final support level, before we could see a bearish reversal.
Bullish Reversal: Price rejects...
Major 200SMA support breakdown as well as bearish neg MFI divergence. 50DMA in position to break below 200 SMA. Depending on an upwards re-trace, short entry positioned @ 38.2% ($50.47) w/ a testy stop between 23 & 38 fib.
Strong long-term trend.
Careful of the potential for a head and shoulders. Use SL now, but if price rises above $51 can use the ATR Stop indicator as a trailing stop (exit on close below). If using ATR Stop, target is not required.
Seen this same pattern a couple times before.
The idea was created several weeks ago, but its realization is possible only today. By the way, an interesting moment. Then the buy area was indicated and since the stock did not reach it, the position was not opened. Otherwise, it stopped out me. Now the signal has worked on the fact