NEW YORK, NY -- (Marketwired) -- 11/14/14 -- LiveDeal, Inc. (NASDAQ: LIVE) was founded in 2003 and provides online marketing solutions for small and medium sized businesses. In September 2013, the company launched a mobile and online deals platform for consumers via www.livedeal.com. Average daily volume in the stock is 555,568 over the last three months.
Cory Mitchell, a proprietary trader and Chartered Market Technician (CMT) specializing in short to medium term technical strategies and the founder of www.vantagepointtrading.com, writes: 2014 has been a volatile year for the stock. Using post forward split prices, LiveDeal traded as low as $1.35 at the start of the year and as high as $11.94 in February. Since then, the stock has been sliding lower, hitting a low of $2 on October 15, and in the month since its low, the price has rallied nearly 70 percent to $3.38 on November 13.
LiveDeal's price is fast approaching the top of a wedge pattern near $4.10. If the price breaks above the wedge, it could signal the end of the downtrend, as a wedge is often a reversal pattern highlighting a deceleration in the selling.
A bullish divergence on the MACD indicator also signals selling momentum has slowed. While the trend remains down, if the price can break above the wedge pattern, it may draw in more buyers, pushing the stock price higher. Based solely on the wedge, if the price breaks above $4.10, the price target is in the area of $7.
Currently, the price remains within the wedge. If it can't proceed higher and instead declines, there is support between $2 and $1.80; a potential buying opportunity exists based on the slowed selling and the potential for the wedge to create a longer-term reversal higher.
A drop much below $1.80 could push the price to long-term strong support at $1, the price from which LiveDeal rallied at the start of the year.
Technical Summary
LIVE is in a short-term uptrend within a larger descending wedge and downtrend. A break above the wedge indicates the downtrend may be over. While the price remains within the wedge buying opportunities occur at support. A break below wedge support indicates a decline to strong support near $1.
About Cory Mitchell, CMT
Cory Mitchell is a proprietary trader and Chartered Market Technician (CMT) specializing in short to medium term technical strategies. He is the founder of www.VantagePointTrading.com, a website dedicated to trader education and discussion. Cory Mitchell graduated with a degree in business, and he has been trading multiple markets and educating traders since 2005. He has been widely published and is a member of the Canadian Society of Technical Analysts and the Market Technicians Association.
Mitchell's works have been published by Technical Analysis of Stock & Commodities magazine, Forbes Digital, Oil & Gas Investment Newsletter, Yahoo Finance, Investopedia, Chart Advisor, Daily FX, Investing.com, Investing Thesis, eHow, International Business (IB) Times and many others. He's also the Day Trading Expert for About.com, a top 100 global site. Mitchell now primarily focuses on the Forex and Futures markets.
Disclosure: The author, Cory Mitchell, was not compensated for this analysis, and he has no holdings or interests in LiveDeal, Inc. This technical outlook is the opinion of the author based on his own research.
Contact:
Vantage Point Trading
cory@vantagepointtrading.com
Source: LiveDeal, Inc.
Released November 14, 2014