LMF.N Weekly chartThis chart and analysis are not financial advice. Do your own research before trading or investing.
$CSELK: LMF.N0000
Moving Averages:
30-week Moving Average (MA 30): The yellow line represents the 30-week moving average, a key trend indicator.
The price is close to this moving average, which slows upward but seems flattening. This indicates a potential shift in trend as the price consolidates after a strong upward move.
Stage Analysis: Stage 2 (Advancing Phase):
The stock experienced a strong upward trend, reflected by the steep rise in the price and the increasing slope of the 30-week MA earlier in the chart.
The price has reached a peak near 34.50, which matches the top of the "Head" in the Head & Shoulders pattern. This is a sign that the stock has entered the latter part of Stage 2.
Potential Transition to Stage 3 (Distribution Phase):
The flattening 30-week MA and the formation of the H&S pattern suggest the possibility of a transition from Stage 2 (Advancing) to Stage 3 (Distribution).
Volume is also an important factor, and we can see a decline in volume during the formation of the right shoulder compared to the earlier price rise. This supports the distribution phase idea, where the stock is potentially being sold off after a long run-up.
If the price breaks below the support zone of 24.00 - 26.00 (S: 24.00 - 26.00, marked in green), the H&S pattern will likely be confirmed, and a bearish reversal could follow.
Relative Strength Index (RSI):
The RSI at 61 is still in bullish territory, indicating some upward momentum left. However, if the RSI starts to fall below 50, it would confirm a bearish shift in momentum, further supporting the H&S breakdown.
