Take a look at the 1-year chart of Leju (NYSE: LEJU) with the added notations:
Outside of the July-August rally, LEJU has been trading sideways since it IPO’d. In addition, since the beginning of August, the stock has found support at $12 (red) whenever that level has been approached. Now that the stock is there again, traders should be able to expect some sort of bounce. However, if the $12 support were to break, much lower prices should follow.
The Tale of the Tape: LEJU has a key level of support at $12. A trader could enter a long position at $12 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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