Q: I have held LNR for a couple of years now and it has recently been in an uptrend. I was looking at a 20 year chart and it has just broke the all time high set 15 years ago or is about to hard to tell for sure on the chart I was looking at. While I am not a technical guy with stocks does this have any significance either technically or in general. Thanks
5i Research Answer:
Generally, a stock breaking new all-time highs is a positive signal and is sometimes referred to as 'blue skies'. When a stock trades in a range of prices where it has previously traded, investors often have certain cognitive biases like anchor bias, breakeven levels, disposition effect, etc. Although, when a stock breaks into new all-time highs, these are then price levels which investors do not have prior expectations or biases towards (these levels cannot represent breakeven for investors as they have not been reached before, and there cannot be an anchor bias).
LNR is just at its all-time highs from 2015, 2017, and 2021, and we would like to see the price firmly break above $93 to help confirm 'blue skies'.