Thursday, May 22, 2008

LXU Update - 5/22/08

I continue to monitor LXU and it appears to be getting close to its last phase of decline in this area. I continue to look for $17 as an area to purchase the stock and or call options, however the call options are rather thinly traded so exercise caution on this endeavor.

The reason I say that the stock is getting near a termination of lower prices is the declining wedge it is forming which I have drawn in green lines on the chart. This formation is typically resolved with a breakout above the top line and then a sharp move higher from there.

It remains to be seen what exactly the stock will do, but we need to be alert to the probabilities before us.

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