Back above the 200 dma.....barelyAnyone who follows technical analysis, even if they just dabble in it, knows about support and resistance levels. Often these levels are drawn out on a chart using simple moving averages, the average closing price of a stock over a given number of days. The most commonly followed moving averages are the 50 day and 200 day. They're often default settings on charting sites.
When I see a stock's PPS repeatedly hitting a key resistance level, then falling back...over and over again, it suggests to me there is a good chance that the PPS is going to eventually break through that level. The same holds true with support levels....when I see a stock repeatedly dropping to a support level, I expect it to eventually fall through.
With respect to LMD the resistance level we keep butting up against, for the past 6 months, is the 200 day moving average. Including the current jump I count 5 times since April that we've either touched or broken briefly above.
I'm liking the chance for LMD to get above the 200 and to eventually stay above it. Back in April/May it looked like we might be on our way....but then there was a sudden surge in short selling, wtih about 500,000 borrowed shares being dumped that imo killed the rally. Now short interest is back down to zero....
The PPS got beaten down but it keeps popping back up, it kinda reminds me of a song: