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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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.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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