LEG (Leggett & Platt) clears consolidation
LEG has been trying to breakout of a multiyear consolidation since May 2014. On the weekly chart I have drawn on the 1998 and 2004 highs (to highlight this point) and the more recent consolidation zone which lasted just over 5 months.
Finally in October 2014 price made a big bullish move (on earnings and higher volume) but this was far too early to consider a buy on this stock bearing in mind both the long-term (1998-2014) and shorter-term (May-October 2014) consolidation zones.
There was a small pullback and gap up on 31st October and for some this would've been a good opportunity to enter long. For others the added confirmation of a bullish flag above $40 presented an alternative. Either way, LEG is looking like a good bullish stock.
Finally in October 2014 price made a big bullish move (on earnings and higher volume) but this was far too early to consider a buy on this stock bearing in mind both the long-term (1998-2014) and shorter-term (May-October 2014) consolidation zones.
There was a small pullback and gap up on 31st October and for some this would've been a good opportunity to enter long. For others the added confirmation of a bullish flag above $40 presented an alternative. Either way, LEG is looking like a good bullish stock.