Art's Charts

LTD traces out bearish setup

Arthur Hill

Arthur Hill

Chief Technical Strategist, TrendInvestorPro.com


I featured Limited (LTD) two weeks ago with a small pennant, but the stock never broke pennant support for confirmation. Even though LTD edged higher, it looks like a bearish flag is now taking shape. The stock gapped down in late October and this gap zone acts as resistance. A bearish engulfing pattern formed three days ago to affirm resistance around 19. With a feeble bounce the last two days, LTD established flag support around 17.6. A break below this level would signal a continuation lower.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More