Traders In Lumber Liquidators Sawing Wood After Period Of Extreme Volatility

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show. Lumber Liquidators Holdings Inc LL share were trading lower by $0.81 (2 percent) at $28.55 in Friday's session. After a month of extreme volatility, the issue has settled in a tight trading range over the last four sessions. The catalyst for the unprecedented volatility has been concerns over the dangers of formaldehyde levels in some of its flooring products. The issue, which peaked on February 25 at $69.99, swooned all the way to $27.79 on March 9. Since that time, it has vacillated with every comment made by Wall Street analysts, hedge fund managers and the company itself. However, the price action as of late has come to a halt. For the entire week, it has traded in narrow range from $28.22 to $30.73. On many occasions over the last month, it has a similar range in a matter of minutes. At this time, it is migrating toward the lower end of that aforementioned trading range. After a higher open, it immediately found resistance at $29.59 and began to decline. If the retreat continues beyond the $28.22 level, the low of the move at $27.79 may come into play, Lumber Liquidators is trading at levels not seen since June 2012 when it bottomed at $26.52.