Yesterday’s price action makes the GoNoGo Chart for LLNW very interesting.
After almost filling the gap after the “Go” flag was identified on January 20th, price pulled back, causing the GoNoGo Oscillator to crash to the zero line. As we know, when a strong trend is established, we should see the zero line acting as support during any correction or consolidation in price. Any short term counter trend correction should not be strong enough to push any momentum inputs into oversold territory, so the GoNoGo Oscillator is likely to find support in a healthy trend.
As the oscillator rallies into positive territory, look for price to make an other attempt to fill the full gap from October, with a sensible target being the top of the gap at around $5.80
