Follow Up on LDK

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."

Here is the full article.

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