LTRX Forms Deep Base in Stage 3 Topping, Neutral Bias

Posted on by Eben@CANSLIM Research
LTRX daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

LTRX is consolidating in a Stage 3 topping pattern, with price churning around the 30-week moving average. The current base is a deep 40.9% correction over 11 weeks, which historically carries an elevated failure rate. With no VCP contraction or breakout trigger, the setup remains neutral and warrants a wait-and-see approach.

As of 2026-08-14 · Close $6.47

Stage 3 (Topping) — Price churning around the 30-week MA — topping consolidation (30-week MA 6-week slope: -1.26%)

⚠️ Faulty cup warning: the base is 40.9% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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