LMF Weekly- Update
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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.
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