America On-Line: will it survive ...? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line: will it survive ...?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: LordDarley who wrote (1915)	2/25/1997 11:09:00 PM
From: Leo J. Capobianco, DO	of 13594

This was emailed to me today from a popular day trading firm: AMERICA ON-LINE (AOL) - Avg. Vol: 1,994k - Price $34 7/8. AOL has been trapped in a sideways consolidation pattern for more than a month, and a quick glance will clearly show that the stock has found a floor of price support between $33 and $34. Each time AOL declined to the $33-$34 area (over the past 5 weeks), a very decent rally ensued (see arrows). We see no reason why this recent pattern should not continue. Tip: A trader's job is not to guess when a consistent pattern will fail, but to play a consistent pattern "until" it fails. Before the market opens, place a buy stop order at $35 1/8 (not a buy limit order; that's different). Once executed, place a stop 1/8 below $33 for the time being. We will adjust this rather distant stop in tomorrow's issue. Look for a $1.50 to $2 move. Note: Be certain that you do not overstay your welcome with AOL. We believe the way to play it is to get in, grab the potential trader's bounce, and then get out. In other words, hit and run. Could explain why it went up today on bad news!!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next