LKQ Corporation provides replacement parts, components, and systems
needed to repair cars and trucks in the United States, the United
Kingdom, the Netherlands, Belgium, Northern France, Canada, Mexico, and
Central America. The company operates in three segments: Wholesale North
America, Wholesale Europe, and Self Service. It distributes various
products, including aftermarket collision and mechanical products;
recycled collision and mechanical products; and refurbished collision
replacement products, such as wheels, bumper covers and lights, and
remanufactured engines. The company also offers recycled products
comprising engines, transmissions, door assemblies, and bumper
assemblies, as well as sheet metal products, such as trunk lids,
fenders, and hoods.
Take a look at the 1-year chart of LKQ (Nasdaq: LKQ) with the added notations:
LKQ has essentially went nowhere over the last 12 months having
traded sideways the whole time. And during the last year, the stock has
also created a key price level at $25 (red), which has been support
every time it has been tested since June. Now that the stock has broken
that support, lower prices should follow.
The Tale of the Tape: LKQ broke a key level of
support at $25. A trader could enter a short position on any rallies up
to or near $25 with a stop placed above the level. If the stock were to
break back above the $25 level, a long position could be entered
instead.
Please share this article
Click Here to Listen to the Audio