Lex Services

[Sellnow]

I've been monitoring Lex for some time and notice that it appears to be at the top of its trading range. Does anyone have a view as to whether this would be a good time to sell short?

Thanks for any comments

Sellnow.

 

[FTSE Beater]

Hi Sellnow

Depends what you have as the trading range and time scale.

I've got the trading range as support at 440 and resistance from an unconfirmed down trend at 580, and also the last major high. There is also shorter term support at 550.

The choice to short could be a strong one. I tend to look for a 3:1 win/loss ratio on TA, so at the moment Price = 554, Stop-loss=590 and a target = 440.

Loss=590-554 = 36
Win=554-440=114.

....so a short would be reasonable. All IMHO

 

[Riz]

Yes, it looks like top of the range..only I see the last upmove starting on an island reversal (19-25 March) and as it's known the reversal is intact until the second gap is closed...so untill that happens I'd treat the downtrend with a pinch of salt...

Riz