Louisiana Pacific is Ready to Build a New Story

• Posted by Greg Harmon
• on October 16th, 2012

Building supply company Louisiana Pacific, $LPX, is benefiting from the real or perceived housing recovery, up over 200% since the bottom in October 2011. One of its major competitors, Weyerhauser, $WY, was profiled here last week and now it seems it is Louisiana Pacific’s to make another move. Take a look.

Louisiana Pacific, $LPX, Daily

The daily chart above shows the price moving back to the top at 15 after finding support at the 50 day Simple Moving Average on the recent pullback. A move over 15 carries a Measured Move higher to 17.20. The rising Relative Strength Index (RSI) and the positive and growing Moving Average Convergence Divergence indicator (MACD) both support continued upside movement in

Louisiana Pacific, $LPX, Weekly

price. The weekly chart should give more confidence for a move higher. The 13 area had been a multi-year resistance and the pullback held on the retest. On this broader scale you could make an argument for a Measured Move to 22.70. Wait for the trigger at 15.

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Dragonfly Capital Views Performance Through September 2012 Expiry

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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