Breakout in LRNStride (LRN) is an early-stage turnaround opportunity setting up in a textbook consolidation pattern.
Pullbacks have shrank from 28% to 9% as volatility compressed into a tradeable window. There was clearly heavy supply at the $36 mark, but it appears buyers have now worked their way through it, creating a "line least resistance" as Jesse Livermore would say at that level.
LRN should now be free to move higher, and even a slight increase in demand will likely have cause a significant rise in price.
I shared this idea last week and wanted to update the trade idea now that it has hit my entry trigger.
I am working a stop below last week's range at 32.60.
LRN
LRN Breakout TradeLRN is setting up in a textbook breakout pattern. Sales up huge with gains of 44%, 46%, 52% and 48% in each of the last four quarters respectively.
Notice the pullbacks getting shallower from left to right. This is a sign that profit-taking is drying up and fewer shares are being offered as the stock trades from weak hands to strong ones.
The volume contractions in the tighter range confirms this further.
Monday's selloff likely shook out the last wave of weak-handed holders which will only strenghten this setup.
Consider buying new highs above 35.96 with a stop below the most recent swing low.
Going back to school to LRNKeep an eye on this one -- we like it long right here. Multi-year breakout above $40 last month now holding as support. Deep pullback to the 50dma with a large open interest put level at the 43-strike to act as support as well. Shorts are in covering mode down over -18.03% over the past 2-weeks. Options are moderately priced in the 19th percentile as well.
Long Opportunity -Swing Trade IdeaLRN just hit all-time high @$51 this morning,
My limit sell order was at 50.38
My order got filled while I was sleeping this morning...
I had a rough night last night...lol
Retail investors of won't be able to cause panic sell-off, its because 80% of the LRN stocks are institutionally owned.
Every time there is an attempt of massive sell-off, the institutional buyer just eat them up
given the circumstances, the Price action of LRN doesn't surprise me at all
Like I said earlier in the historical chat, My Target Price is $70.
I see no problem LRN will retest 50's and reach $55-58 area
I have already put a Limit Buy Order @ 47.65-47.70
LRC: possible retrace soon?LRC is sitting in a strong support zone at the moment. It is also in the golden pocket between the .618 and .786 FIBs from the previous run up. If it breaks out of the ascending triangle and clearly above the upper red line, this may signal a reversal. ALSO, they are airdropping $LRN beginning July 5th. If a major exchange announces support, this could rocket price IMO.