LLNW could be near completion of a weekly wave 2 correction. From October 6, 2008 low of 1.75 to a high of 5.78 on June 11, 2009 – the stock hit a trading low of 3.23 today August 31, 2009. A 62% Fibonacci retracement on the weekly chart from the levels described would be 3.28.
Faster trading time frames show a divergence in price to MACD signals. The 30 min. MACD signal line is about to cross depending on your settings. Use the signal crossing along with the trading low of 3.23 to set up a long weekly wave 3 trade. Wave 3 could trade to 10.76.
Or, trade a shorter time frame with the 3.23 support level acting as a possible bottom of wave 1. If 3.23 level holds LLNW should trade to 4.70 before showing signs of another considerable correction.
Shorter trading time frames will reveal if the corrective weekly wave 2 is complete.