On daily chart, you can see a 1-2-3 wave completed. In anticipation of a wave 4, I am shorting LH and expect the stock to fall to close to 71.50 level before starting wave 5.
There are multiple reasons to believe wave 4 is starting. On the daily chart, a divergence in the momentum and price action has begun and a bearish reversal in the overbought zone has occurred on the Stoch. This reversal coincides with the price just reaching important fibonacci levels.
The hourly chart is showing some support at 72.80 level - right at the 21-hour MA. If the price breaks this support, there will be strong conviction behind the wave 4.
Finally, I also believe the overall market is once again losing momentum which could propel the down move in LH.
I shorted at 73.06 with a stop loss at 73.40.
-Wown
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