Stock Chart Analysis LTON

Posted by downtowntrader | 10/09/2007 09:41:00 PM | 0 comments »

Stock Chart Analysis LTON

Linktone Ltd. (ADR) (Public, NASDAQ:LTON)

LTON had a nice surge a few days ago and has been consolidating that move since then. Chinese stocks have been on fire and while this is not a Chinese company, they provide services to China. Either way, I could care less what the driver is as long as someone is buying it. As a technical analyst, it is my job to uncover situations where one group of traders is overwhelming the other. LTON is a good example where bulls may be about to overrun bears.

Here is the daily chart showing a possible pennant forming above the 200 day sma.


The weekly chart is also promising showing LTON trading up near the high end of an established trading range. This is a level I will be watching as a break could mean the beginning of a new trend higher.


Good Trading,


Joey

for more analysis, check out downtowntrader.com

0 comments