Will Divergent Make The LGF Stock Roar Like A Lion
Lions Gate Entertainment LGF released Divergent as the first in a 3 part trilogy with Insurgent and Allegiant yet to come. The stock was also divergent.
One of the great qualities of the stock market is the investors try to buy early for a big move up or sell early when they don’t see new catalysts for the stock. We would like to see if that behavior reflected in the stock price of Lions Gate Entertainment. Perhaps the title of the movie will be the plot of the stock.
First glance, the investors don’t expect the next Harry Potter series here. After being in a strong up trend, the stock made a double top near $38. The importance of the chart information at that time suggested caution. The uptrend line divided the double tops so something might be changing. The longer the trend line and the more touches on the trend line defines the strength of the trend line.
When the stock failed to hold the $34 area, investors knew Divergent was ready to be released. The MACD at the bottom of the chart told us the stock was ready to be released too. The dotted line pointing to the MACD reveals a significantly lower momentum on the final high. When the stock failed to get back above $34 as the release date approached, this looked more and more ominous. After dropping from $38 to $28 or losing 25% of its market cap, the investors were not hoping for much.
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Will Divergent Make The LGF Stock Roar Like A Lion
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