Solar: LDK

LDK shows a move up from its low (3.75) in early March to a high (11.55), then went into a pennant. It has since broken out of the pennant, retested it, and now shows a Bollinger squeeze. On Balance Volume leads to a new high, although Accumulation/Distribution disagrees.

The 60-minute graph shows the same, with increased detail. It exhibits a new short-term trendline paralleling the previous uptrend line. We are at the buy point, awaiting only an upturn at most, preferably with higher volume.

The exhibited pattern qualifies as a high, tight flag since price performance exceeds 200% in the two months prior to entering the pennant. Target calculates as 15.4 [(11.55-3.75)+7.60]. Point&Figure Price target calculates as 16.75. Reward:risk ratio calculates as (15.40-9.36):(9.36-9.00) = 16.8:1, or unusually favorable and far above the minimally acceptable 3:1.

Because of the disagreement of the Accumulation/Distribution and this morning's market futures indicating at least a down opening, best to await the upturn in price before buying. Price may well retest the pennant's downtrend line, again, which changes nothing except the entry and stop-loss points to an even more advantageous level.