Lions Gate Entertainment
Last up this week is independent film and television distributor Lions Gate Entertainment (LGF). If AT&T's stock performance this year has impressive, the returns at LGF have been downright stellar. Since the first trading day in January, shares have rallied more than 64% -- and there's potentially more upside to this stock in March.
Right now, LGF is consolidating just under $14 resistance after posting a prodigious rally for most of the year. Consolidation ranges provide investors a chance to plan out their next move and bleed off some overbought momentum from shares. The tight range shares are seeing right now points to the possibility that it's a "half-mast" pattern, that is, consolidation that's followed by another move of a similar size to the first. That expectation may be a bit overblown, though.
I have my doubts that Lions Gate can pull off another leg of its rally equal to the one we've already seen. That said, a breakout above $14 would send a strong buy signal - and with plenty of Tweeters following this stock's setup this week, there'd be plenty of participation in the trade to buoy shares. Wait for LGF to move above its consolidation range at $14, and then take a position in this stock.To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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