OTCPK:LLEN - Post Discussion
Post by
COO2002COO on Sep 06, 2013 5:30am
The Street - 5 Stocks Under $10 Set to Soar
One final under-$10 coal player that looks ready to trigger a major breakout trade is L&L Energy(LLEN), which, through its subsidiaries, engages in the production, processing and sale of coal in the People’s Republic of China. This stock is off to a hot start so far in 2013, with shares up 34%.
If you take a look at the chart for the L&L Energy, you'll notice that this stock has been downtrending badly for the last four months, with shares falling from its high of $4.94 a share to its recent low of $2.13 a share. During that downtrend, shares of LLEN have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of LLEN have now started to rebound off that $2.13 low and it's quickly moving within range of triggering a major breakout trade. If this rebound holds, then it could mean the downside volatility for LLEN is over in the short-term.
Traders should now look for long-biased trades in LLEN if it manages to break out above its 200-day moving average at $2.59 to its 50-day moving average at $3.02 a share and then once it takes out more resistance at $3.10 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 646,402 shares. If that breakout triggers soon, then LLEN will set up to re-test or possibly take out its next major overhead resistance levels at $3.83 to $4 a share. Any high-volume move above those levels will then put its next major overhead resistance levels at $4.40 to its 52-week high at $4.94 a share into range for shares of LLEN.
Traders can look to buy LLEN off weakness to anticipate that breakout and simply use a stop that sits right that recent low of $2.13 a share. One can also buy LLEN off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- Written by Roberto Pedone in Delafield, Wis.
https://www.thestreet.com/story/12028150/6/5-stocks-under-10-set-to-soar.html
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