White Marubozu on LR. Start of another rally?

After consolidating for few days, LR is back on track and registers a 6.5% rally last Friday. Obviously the bulls are in control as of this time. Its daily chart shows that there is a possibility it reach the 261.8% Fibonacci Retracement level or around 8.74 per share. So far no bearish signal from candlestick. The large green Marubozu suggests that a new climb will happen but in case it will turn sour, immediate support is at 7.62 All lines from Ichimoku are telling us that LR is in an upward trend.

Weekly chart shows that LR registered a bullish signal on Chikou Span, Kijun Sen / Tenkan Sen Cross and Kumo Break. The 8.73 will our resistance while 8.10 is our newly found support.

RSI or Relative Strength Index is already a bit overbought so watch out for a correction. It could be an opportunity to buy or add more shares when it corrects as long as our signals are intact.

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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