LONG TERM: (See the attached 3-year weekly logarithmic chart)
At the first glance we see a huge ascending triangle with a bear trap (red),
which is a very bullish bottom pattern. The bear trap is in the form a
double bottom (blue). If LOOK breaks up the 2.32-neckline (blue) of the
double bottom and returns back into the ascending triangle (red), most
probably it will break up the upper resistance of the ascending triangle at
4.13 (red). This is the bullish scenario, which is more likely. However, if
LOOK cannot enter back into the ascending triangle and bounces back from the
lower trend line of the ascending triangle (red) a third time time, then the
picture gets very ugly. In this case the supports are at 0.76 (green) and at
0.31 (gray). Next week will be a critical week for LOOK.
SHORT TERM: (See the attached 6-month daily logarithmic chart)
On the daily chart we can see the double bottom (blue) more clearly. The
pattern may be interpreted as an ascending triangle too when considered with
the line of rising dips (orange). It is also noticeable that both legs were
in the shape of smaller double bottoms (purple, pink). The neckline of the
latter at 2.16 (pink) is already broken up. The next step will be the
testing and breaking up of the 2.32-neckline (blue). If LOOK succeeds to
break up this neckline the target of the double bottom will be
(2.32-1.27=1.05; 2.32+1.05=3.37).
Americanbulls.com posted a fresh SELL signal. If you are holding this stock
we advise you to keep it unless the 2.16-neckline support (pink) is broken
down. If you do not have this stock and are interested in it, we advise you
to add this stock in your portfolio as soon as the 2.32-neckline resistance
is broken up.
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