[isatrader]

It looks like L.AQP has turned out to be a continuation. I am not sure what happened fundamentally, but it has a massive gap down to new all time lows and on above average volume, but less than recent weeks volume (so far). An example showing to not try to be too cute and go all in early in a stage 1 base.

Not sure what the tell tale signs are looking at the chart that this was going to happen as the recent high volume was on good price action.

There was no way to know in this case as the company has done a "Rights Issue", giving all the current holders of the stock a chance to buy shares at 16p. So a secondary offering, but for all shareholders. It's not an area I know anything about, but I believe if they take up the offer then it's similar to a split in that they won't have lost anything. But if they don't then they'll be down considerably.

As you said, it's a good example of why Weinstein recommends buying at the Stage 2 breakout level as bottom picking in Stage 1 is often too early and has a higher risk of failure.

So, it should come off the watchlist now, as it's gaped below the Stage 1 range we were watching, and so it's going to have to make a considerable recovery or form a new Stage 1 range before it's interesting again.