NEW YORK (TheStreet) -- LendingTree (TREE) - Get Report shares started their upward trend on October 2011, reaching the price of $85 from $5, a rise of about 1,700%. In August the price rocketed to $139, a jump of 65%, after last quarter's results, which were extremely positive.
As can be seen, the price left a gap-up open at $85 and over the last few days, as the stock has come back closers to $110, it seems as if the price wants to close that gap, showing weakness of the last rally.
If the price is still above the half-side of the August 4 candle, wait for this level to be broken before taking any action. This technical analysis and bad business conditions suggest that the right course of action right now is to hold on and wait to see what the next few days of trading bring. The price could move to close the gap, then bounce back to new highs. At that point, the stock can be considered a possible buy.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.