Above is a daily chart of LHSW, and what immediately gets my attention is the sheer volume that came through today. For a stock with such a short trading history, today’s action was a clear outlier. More than 27 million shares traded, easily the heaviest volume this name has seen so far with the stock closing higher on the day finishing up 53%. That combination of elevated volume without a sharp selloff is something I always pay attention to, especially in lower-priced stocks where momentum can build quickly once interest shows up.
From a technical perspective, the $1 level is now the key area I’m watching. A move through that level tomorrow could be important, not just psychologically, but technically as well. If buyers can push LHSW over $1 with conviction, there’s a good chance that momentum carries it right into the downtrend line shown on the chart. Even better would be a clean break of that downtrend line, which could signal that the character of the stock is starting to change, at least in the short term.
One thing worth noting, and something that still amazes me, is that some brokers are restricting trading in this stock. From what I understand, Schwab won’t allow online orders and requires you to call in the trade. It’s hard to believe that in this day and age, with everything electronic and instant, investors are being asked to place trades over the phone. If you’re interested in trading LHSW, it’s probably a good idea to check with your broker ahead of time so there are no surprises if momentum really starts to pick up.
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