Prepping to Lock Up Profits in Lifelock

• Posted by Greg Harmon
• on October 20th, 2014

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LifeLock, $LOCK, has been steadily rising from a bottom in May at 10.50. But in September it started to find trouble moving higher when it met the 200 day Simple Moving Average. Since then it has been consolidating between that 200 day SMA and the rising trend as support. This is making for higher lows as the range tightens.

A situation like this, an ascending triangle, has a tendency to move dramatically when one side of the range gives out, either from seller exhaustion at the 200 day SMA or buyer fatigue at the rising trend line. And when it does it often moves quickly in an amount equal to the wide end of the triangle. In this case a conservative view would look for a $2 move (like the range from 13.75 to 15.75) with a looser interpretation of a %5.25 move. Either one is quite a return. With the price pressing against the top line again and a bullish RSI, as well as almost 19% short interest get ready for a move higher to participate.

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