Stock Chart LNC

Posted by downtowntrader | 6/08/2008 09:03:00 PM | 1 comments »

Stock Chart Analysis LNC

Lincoln National Corporation (Public, NYSE:LNC)

One of my favorite patterns to trade is buying a stock that looks like it is completing a pullback after a 52 week or all time high. The reverse works very well in certain market environments. Assuming we are in a bear market, this would qualify as one of those market environments.

LNC made a new 52 week low in January and successfully tested that low in March. If you step back and look at the overall picture, it appears that LNC has been in a corrective move higher after a steady downtrend. While it could be in a bottoming process, the breakdown from a rising wedge portends a move down to retest the lows again. The retest would yield a 10% move, and there is always the chance it breaks down to fresh new 52 week lows.

I would look at any bounce in the next few days as a possible shorting opportunity.




Good Trading,


Joey

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1 comments

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