LUMN is in a valid breakout trend but current entry is poor; wait for stabilization after a minor pullback toward 1050.

Okay, I'd like to take a look at Lumens stock and here's why. I touched on this last time when talking about my missed deals, and how I didn't buy when I should have , and then decided that I wanted to get this stock anyway, but maybe it's better to wait until Monday.

Well, that's a good thing. I'm glad I did that, because now we have a completely different perspective, and I'd like to talk about some things related to trading, entry points, and things like that .

So, let's take a look. Well, here 's the status of Lumens stock today.

Now, let's go back to last Thursday . Good. This was the perfect time to buy. You can see that the trading volume was about a third higher than normal. I don't know the exact calculations, but you can find out if you care a lot about it.

Okay, the 10,050 level is the resistance level here. However, it was with very high trading volume, and it was a clear break above the thousand-dollar level here. So, it was a very good move.

In terms of percentage, it didn't even reach 4%. But it was a genuine and credible move, and you could look at it and say, " Okay, I want to get in the next day." Boom, go up a little more, okay? This is good. I love that.

I should have logged in yesterday, that is, on Thursday, but I didn't . Now, it is Friday. Would I actually buy a stock on its second day of breaking out on Friday? What might happen on Monday?

Will it be good? Will it be bad? Will he be neutral? The lights might go out , I don't know, a deliberate pun. So, we will wait until Monday instead.

So what did you do today? nothing. It rose slightly. Sorry, it did n't even rise 1%, but it did move. But this is a good example of how to analyze where a stock is in the breakout phase.

You'll notice, let me show you all of this. I was inclined to keep these lines, just so I could identify the levels I was looking at at a given time . Honestly, it's going to be very confusing and one day I'll say " Damn it".

I'm just going to , you know, delete them all. But for now, it's still there so you can see the key points and stop-loss levels you've identified.

But now, if you look at this, you'll find that the momentum has definitely slowed down. There's a lot of activity here, and a wide range . A wide range of activities are taking place today .

From bottom to top, that was a range of 11.5 percent. The following day, Friday, the range was 5.25 percent. Today it was less than 5 percent. So, the ranges during the day slow down and shrink a little, but the important thing to note, which many people don't look at, is, well, ignore the closing prices.

Just look at the highest and lowest levels of the stock during the day, because the periphery is where you really recognize the true strengths and weaknesses, at the periphery, not in the middle.

In other words, how far will the stock fall before buyers step in and say, " Okay, I want to buy this stock now." This is a good price. Then how high will the stock rise before the sellers or shareholders say, "Do you know?

I want to sell this stock. This is a good price here. I will sell it. And all of this depends on consensus. It's not about one person owning a group of shares. This is the market consensus.

When does the market decide on any given day that the price has fallen enough? Is this the best time to buy? The public is the one who makes that decision. Obviously, they don't all buy at the same time, but the public makes that decision regarding what is fair. What is a fair price?

So, what I like to look at are the relative highs and lows. In other words, compared to the previous day, was the low higher? Is the peak higher than the previous day's peak ? You can see that here in the back.

Anyway, let's get back on track. So, this was the lowest level here at 884. That was on the 28th of last month. Since then, we have seen a higher trough, a higher peak, a higher trough, a higher peak, a higher trough, a higher peak, a higher trough , a higher peak, a higher trough, and a higher peak.

The difference I see here is in this, the value of the closing position. This is where the closing price is located in relation to the daily trading range. Where is that located?

It's about , you know, the bottom third, let's say. But the day before here, this was almost at the top of the range. Here, I think you...well, let's take a look and see. As you know, if we were just to put this here , um, I would definitely have to say that this closing was in the top 25% .

So, what I'm talking about here is how the stock trades each day relative to what it was the day before and the day before that.

So, this leads us to my current analysis. No, I didn't add it today. I may not add it tomorrow because it gets to the point where you say, I think I may have missed this move. So, the only reason I would buy it now, at this moment, is because I somehow feel that I would have some compensatory qualities as a trader, and perhaps as a person, by owning this stock.

And I can say, "Yeah, look at me." "Yebbi". Ah , of course, without considering the fact that it's not about what I own, but the price I bought it for . In other words, at what price did you acquire it?

Buying now in the midst of this movement, um, I think you can do better.

But when you look at it this way, like, look, guys and ladies, um, let's be honest. This stock had been drifting for a long time. He's coming up here. I have already given you my goal .

I think this thing could reach 1500 and I think it can do that by the end of this year, given the way it's trading.

But what I hope for, and remember that hope is certainly not a good plan , nor is it a sound trading approach , is that it is a feeling I sometimes give in to. What I hope is that the stock will only decline slightly, not significantly.

Because if he retreats too much, I will feel suspicious. But if you can get this stock to drop about $30 or so, to be closer to 1050 than to 1100, and then stabilize, that stabilization part is the crucial aspect of the deal here.

If you manage to make him back down and then you see the bulls saying, " Okay, I'm in." This is the time when I would want to buy this stock.

So, be aware that this is what I'm talking about. I'm talking about a move that breaks this series of higher bottoms. I'm talking about that movement that breaks it. In other words, oh, a change of character, this seems to be the end of the movement. concept?

So, here's the thing. I am not buying it while the stock is declining. Don't do that. I'm watching this, seeing how far it can go, and now I'll start again tracking the bottoms and tops, which should start to fit the same pattern here.

So, this is how I trade Lumintum stock, members.