$LC – Lending Club, a peer to peer loan company where individual investors lend to borrows. I love this company and investment tool. Not only can you invest in this stock for gains that I see coming in the near future, but you can actually put your money up and diversify across borrowers to see returns of 6-10%. Although I believe that this is a great tool to use in any investment strategy, my piece here is solely on the stock aspect.
Ever since its IPO, $LC has not been doing too hot, but the past year it has been on a slow, bumpy, but steady increase in a trend back up. I believe this stock fundamentally will do great moving forward. Pulling business from CC debt consolidation as the main source of loan distribution will fight the power of big banks and help individuals control investments and their own finances (which we at 2KHedgeFund absolutely love). While I notified this on my feed on 4/11 it was $5.54, currently sitting at $5.81 this thing can move. It is volatile, it is moving up, and I think it will continue to do so. The spike in September if you bought the top, you were rewarded in November during that massive spike up and able to sell for a profit. If you bought the top in November and held you were rewarded in February during that spike. I believe the next spike up will reach another new year high and provided returns no matter your entry. You may have to hold for 3 months, but if you buy the top and are down 15% because of a pullback you better not sell.
$6.20 shows a great level of support and resistance, showing consistent consolidation at that zone each time it reaches it. Taking a look at the MACD you see no signs of converging together to show a change in momentum, the Bollinger band is breached but I see this continuing to run, the RSI shows over bought but again the momentum is there, it will not falter.
Entry under $6.00 and selling over $6.20 is my ideal move on this stock. At $6.20 I would sell or be hesitant of the position, expecting another hefty pullback. The volatility of the run ups and pullbacks of this stock are big, so you must be ready to hold or average down. My personal strategy is buy in 15% position or 10% position and buy on a big dip if I really think the stock will move, if not I sell my partial position. I believe this will run up to $6.22 and then over $6.50 within the next month. The momentum behind this stock, the channel up, and the basis behind the company show that it is bound for success.
A breach over $6.20 will give way to a run up to $6.80.