Yesterday, I saw a news on LYG highlighting that it may offload some of its property assets into a REIT.
What follows was a study of the Ichimoku chart below :
1. From the chart, I saw a possible double bottom forming.
2. LYG has been consolidating within this December last year. And with that the kumo resistance hanging above it is substantially weakended (<< look at the leading kumo which is very thin..suggesting weak resistance)
3. LYG has a ‘weak’ bullish cross wit Tenkan sen crossing the Kijun sen a couple of days back.
4. Chikou Span has also cut through the price level
5. Key resistance level is 3.88; the level where it gaps down to.
6. Volume seems to be pretty high also (vs period before it gaps down …eg. Oct , Nov 2009)
The doubt I have is whether ADRs make good chart reading. Most ADR charts I’ve seen are too gappy for my comfort.
I would wait for a breakout above 3.90, the gap resistance. Possible gap filling after that.