Here is an interesting chart I created.
$LINC shares have slumped about 18 percent after the
for-profit education company announced on June 20th it will be
closing 5 of its 38 campuses in order to augment the company’s financial.
I will solely emphasize on a daily time frame, identifying various S&R levels that could be
very profitable if executed with a proper strategy and risk management. I am
going to start off by covering the first enclosed image that basically focuses on
three main events:
(1) The stock saw a breakout below a 7-month ascending trendline.
(2) $LINC has built a decent price action along a Fibonacci
retracement setup; my next price target is around the 25 percent line ($5.00).
(3) Another simple strategy that should not be overlooked is
the Slow Stochastic oversold/bought levels; this accompanied with price
reaching a major support/resistance, might
indicate a possible trend reversal.
In the second image I highlight a graphical forecast of a
probability cone I placed from June 2012. Basically, it indicates a set of
probable future price ranges which $LINC might
encounter. The forecast has proven itself in numerous occasions,
validating my price target mentioned before around the lower blue line; proximate
to the $5 dollar mark.
Alexander Schachter
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