LMF Weekly- Update
This chart and analysis are not financial advice. Do your own research before trading or investing.
LMF.N0000
H&S Pattern Breakdown
The H&S pattern consisted of a left shoulder, head, and right shoulder. The neckline appears around the support zone of 30-31 LKR. The recent bullish move with a significant breakout suggests that the H&S pattern failed to complete a bearish outcome, as prices moved upward instead of reversing lower.
Volume Spike
The breakout is accompanied by a notable volume spike, indicating strong buying interest. This volume surge validates the upward move, as high volume on a breakout can suggest sustained interest and potential follow-through.
Based on stage analysis, this stock appears to be maintaining it's stage 2 characteristics even though it broke the 30 WMA couple of weeks back.
Bullish Scenario
If the bullish momentum continues, the stock could aim for the resistance zones at 34-35 LKR and, subsequently, 38-39 LKR.
Continued support above the MA 30 line would strengthen the bull case, suggesting a move toward higher levels if buying pressure persists.
Bearish Scenario
If the price fails to hold above the 30-31 LKR support level, it may re-test the 24-26 LKR support zone.
A decline below the MA 30 and a break back below 30 LKR could indicate weakness and possibly a return to Stage 1 (Accumulation) or even a Stage 4 (Declining) if selling pressure intensifies.
LMF.N0000 H&S Pattern Breakdown
The H&S pattern consisted of a left shoulder, head, and right shoulder. The neckline appears around the support zone of 30-31 LKR. The recent bullish move with a significant breakout suggests that the H&S pattern failed to complete a bearish outcome, as prices moved upward instead of reversing lower.
Volume Spike
The breakout is accompanied by a notable volume spike, indicating strong buying interest. This volume surge validates the upward move, as high volume on a breakout can suggest sustained interest and potential follow-through.
Based on stage analysis, this stock appears to be maintaining it's stage 2 characteristics even though it broke the 30 WMA couple of weeks back.
Bullish Scenario
If the bullish momentum continues, the stock could aim for the resistance zones at 34-35 LKR and, subsequently, 38-39 LKR.
Continued support above the MA 30 line would strengthen the bull case, suggesting a move toward higher levels if buying pressure persists.
Bearish Scenario
If the price fails to hold above the 30-31 LKR support level, it may re-test the 24-26 LKR support zone.
A decline below the MA 30 and a break back below 30 LKR could indicate weakness and possibly a return to Stage 1 (Accumulation) or even a Stage 4 (Declining) if selling pressure intensifies.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.