A week ago, I alerted readers to what I felt was as close to a sure thing as possible when discussing the downside to LDK. Those who decided to call in for trading guidance landed a huge score with gains of about 25%.
Let's have a look at a summary of that article.
"I wanted to mention a stock that has a good chance of a large move over the next few weeks, if not sooner.
But this does not provide the full picture. Even more important, LDK is currently testing a very important (although fairly strong) technical support at around $10. In addition, the stock is down by nearly 4% today. Although the recent trading volume has been low and on the declining side, the volume has been huge since the stock corrected from its February 2011 highs of $15.10.
If LDK falls below this support (and the breakdown is confirmed) shares are likely to collapse another 20% before taking a breather.
On the other hand, if the stock holds the support, we are likely to see a nice rally as the shorts become squeezed. Either way, the chances of high and increasing volatility for the stock over the next couple of weeks are high."
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