$LWLG – Swing + Long-Term Hold

LWLG was stopped out today at $6.47 (for a -$0.26/share loss).

The bearish count is above and if LWLG fills out this white count (1-5) to the downside, then it could present another long opportunity.

Today’s Daily candle could be construed as a hammer candle, but seeing how PA dropped out of the channel and formed a clean 5 wave structure down, this could just be an indication that a bottom is near. Hence, another potential long opportunity at the bottom of our area of interest.

The structure off that white b high is not the clearest, but IMO this last push higher has the look of a wave four, with this white (1-5) count potentially completing the wave five down of this white c wave down. If this is correct, then there should be another opportunity to go long at the bottom of our area of interest, around $5.75, with a very tight stop.

FWIW – if indexes were in a bullish posture, our original stop may have been set this low ($5.55 ish region) to account for this above scenario/set-up, but seeing as a stop this low would expose more than $1/share risk, it is not ideal to expose that much capital on a swing trade. It is more prudent to reenter the trade at a lower level, if PA suggest this is possible; if PA doesn’t suggest this is possible, then we have in theory protected a considerable amount of that $1/share risk.

Trading involves risks, and you are responsible for your own trades and decisions. The information provided above is for entertainment purposes only and is not a recommendation to purchase anything related to this instrument or other instruments of similar composition.