By Sun Storm Investment Research A Profit & Solutions Strategy
Legal & General Group PLC (LGEN - LSE) is in WXY down cycle, where X wave is in triangle. Y wave down started, but wait for triangle break down as confirmation for Y down wave to trade.
uptrend pullback has finished and there is nice bullish candle on weekly time
Legal & General is in a solid uptrend over the 10 year timeframe. Since the lows of 2007-2009 it has increased 1000% Currently holding a key macro support line and coming down to test the 30RSI. The last time it broke lower oversold was during the 2009 crash.
As per my wave analysis, there are possible two trades, in short term Long and in Medium term a good Short trade
Legal & General Group stock followed an up trendline since Nov. 2016 that was broken on Aug. 23th. The broken trendline is now finishing a pullback process testing the line as a resistance. This is a good opportunity to short the stock, waiting a confirmation of the down movement to a final target of $258, watching a first target of $263. protecting with a stop...
Legal & General is currently trading above major resistance. The break of this level suggests that the medium to long term outlook is positive from here. We will wait to see if this break can hold on the weekly chart before committing longer term. In the short term the momentum is strong and further gains could be seen. Gap resistance around 267p and the 78.6%...
It's getting increasingly tricky to put money in stocks these days but this analysis might suggest that there is still some upside in this dividend favourite from the UK stock markets. I am less confident with the count on the weekly chart as wave 5 might have completed already but still believe there id upside in the short term at least.
LGEN short from 220p to just under 120p. Move to Value area high and rejection down following the trend.
Legal and General short from 220p. Touching value area high looking for a move to the POC at just under 120p