Lexmark (LXK) presents a conundrum for traders. On the bullish side, the stock bounced off support near 35 with a three day advance on pretty good volume. Relative to the market, the stock is also holding up pretty well the last three days. On the bearish side, the stock shows relative weakness since late October and a bear flag could be taking shape. The bulls get the benefit of the doubt as long as the flag rises. A move below flag support (34.1) would be short-term bearish and project a break below the November lows.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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