You don’t need to be a stock expert to analyse further that the nationwide smoking ban would eat into the earnings of the subsidiaries of LTG. How far would the dip in earnings be, that’s something we would need to monitor as the months would pass.
If there’s one thing I know about trading the market is that we should never speculate on what the outcome will be. Our goal should never be to forecast but rather to follow where the trend is headed. After all in stock trading price is king and the trend is our friend! And that is what this post is all about! What does the chart’s say about LTG?
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The news of the nationwide smoking ban has brought a relatively larger amount of selling to the stock. Strong enough to bring it out of its uptrend. For quick traders the sell signal occurred as it failed to hold the support at 15. Should the selling continue the stock could retrace and drop back to a support of 13.95 to as low as 13.2.
For the uptrend to continue and for it to remain bullish over the long term it must go back to 15 and must hold at that level. If it goes above 15, the short term target price of the stock will be 15.8 Failure to do so would invoke a stronger bearish sentiment. Should that progress, you may avoid the stock first until we could see if it would drop to the support levels mentioned above.