The Lumber Liquidators Holdings Inc. stock is traded on the Frankfurt, Berlin-Bremen, New York and additional stock exchanges. One company from the peer group of Lumber Liquidators Holdings Inc. is the stock Home Depot Inc. The company is a producer of parquet flooring with headquarters in Toana, Virginia.
The following analysis will expand on the company’s stock from a chart-related point of view.
Review (daily chart)
At the latest since October of last year, the company’s stock has been in an intact downward trend. After a longer correction that consistently ran alongside the 200 SMA, the price most recently exited this in a downward direction – also supported by the falling overall markets. With this, the running downward trend was confirmed once again, and in addition, the price undercut the ever-important SMA 200. Currently, the stock is in a correction and if it continues to progress, we will see attractive, favorable entries in the short direction with very good targets and potential.
Outlook (hourly chart)
In the hourly chart, we can see the correction that is currently underway, which has yet to develop in our preferred trading direction. For a short entry, one should wait for the formation of a signal e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green). Alternatively, and with the advantage of a cheaper stop, one can also practice trading from out of the correction or the formation of a reversal bar at a prominent point.
The first target is located in the area around $24.00 (see green zone in the daily chart). A continuation of the trend to the next target at around $20.00 is definitely a possibility. If the price considerably exceeds the last significant high at $31.20, we should abandon the short scenario for the time being (see red zone in the daily chart).
Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.
Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk. It is expressly advised to observe our usage regulations and risk information, available under the link Legal Information on this internet page.