Leucadia National

Last up is diversified holding company Leucadia National (LUK), a channel trade of a different sort right now. LUK's price channel is in a downtrend, and a very well defined on at that. When it comes to price channels, it's about as simple as it gets: Up is good and down is bad; Leucadia looks the latter. Shares have gotten swatted lower on the last seven tests of trend line support, and they're making their way down the channel in this week's trading.

LUK's relative strength has been anemic in 2014, as sellers drop supply on the market on every fleeting sign of strength. Even though the downside risks are a little better quantified than in the trendline break we saw in Morgan Stanley, LUK's grinding losses aren't showing any signs of stopping.

You don't want to be on the long side of this stock until it pushes through resistance. Until then, this stock looks toxic. Stay far, far away.

To see this week's trades in action, check out the Toxic Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.



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At the time of publication, author had no positions in stocks mentioned. Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation. Follow Jonas on Twitter @JonasElmerraji

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