Liberty Global (LBTYK) Spotted As Roof Leaker Today

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Trade-Ideas LLC identified Liberty Global ( LBTYK) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified Liberty Global as such a stock due to the following factors:

  • LBTYK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.3 million.
  • LBTYK has traded 2.5 million shares today.
  • LBTYK is trading at 2.08 times the normal volume for the stock at this time of day.
  • LBTYK crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on LBTYK:

Liberty Global plc, together with its subsidiaries, provides video, broadband Internet, fixed-line telephony, and mobile services in Europe, Chile, Puerto Rico, and internationally.

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