I really wondered why people are so bullish about LIHC these days. Are they seeing something that I don’t? LIHC is well known to be one of the JAP stocks,and to be honest, I really hate trading such kind of stock for House Angping is very notorious in its jockeying activity. If one wants to trade them, one must give it a very special attention.
It was until I heard people talking relating LIHC to the great DAVIN run. I tried comparing DAVIN’s daily chart of early 2016 to LIHC’s current weekly chart…and boy do they look so much the same!
Both retraced at FIB 78.60% after their first run. DAVIN, after the bounce, consolidated at 61.8% for 8-9days before breaking out from the box. And the rest is history.
LIHC is currently consolidating at the same spot at 61.8% but on weekly. Mind the similarities of the MACD and RSI too!
DAVIN reached the Fibonacci extension of 361.8%. If that kind of move is to be followed,then we might as well set 361.8% as our target.