>>>I tend to disagree. $90 looks tough, but certainly it wouldn't take much to breach $90, and
possibly even hit the $70's.<<<
Well, we are from different schools of thought. I prefer Technical Analysis to any other method of picking and trading stocks.
AOL's 200day EMA is at 94. AOL has NOT closed under its 200day EMA for more than a year. If it does so now, then things are bearish.
Now, I did not choose 94 as my sell point. I chose AOL prev. bottom (90, in June).
A close under 90 means you are justified in selling your position, because *most likely*, something is wrong with the stock.
Thus, if you buy anywhere under 95, you risk $5 loss vs $20 gain if you sell at 115, which is where I see "resistance"....
(Even at 110, its a 3-1 profit/loss scenario!!)
Of course, its different opinions that make a stock market.
Good luck.
--Olu E. |
