There are times when a stock on our watch list should be considered untradeable until it meets certain requirements. As short term traders, one of these requirements is, the price point needs to be at a significant support/resistance/trend line. These significant lines are found on the weekly chart before finding an entry signal on the daily.

LGL is a stock that is in a no man’s land right now. It is essentially free falling. If you take a look at the daily chart below, you will see support/resistance/trend lines that is pin pointed on the weekly chart first. When the daily chart is opened it is obvious the stock not in a definite position to break through or bounce. It is entirely possible it could turn around tomorrow, but without significant weekly lines the probabilities of it continuing are dramatically reduced. In this volatile market it is essential to stack the odds in our favour and have a good reason for an entry.

Right now LGL will be watched but not considered for trading until it reaches around $1.70 (next support) and gives a clear signal of either bouncing or breaking.

Remember that not being in an open position IS a position in the market.

(click image to enlarge)

For more information please go to: http://www.planetwealthtradingroom.com