AOL, AOL, AOL, AOL, AOL, AOL, and AOL.
If it can't leave 85 behind, I see it testing the 200-day moving average, probably around 65.
- MACD about to crossover to the downside
- Stochastic mid-range, heading down (was overbought around 87ish)
- RSI overbought - has always fallen from this level
- MACD of RSI close to crossover, has been teetering for a few days
- Not responding to tech rally
It MAY only fall to the 50ma, around 80, but if it does break that, look out below.
The MACD of RSI crossover will be my signal. Will have to move fast, though.
I think this is a fairly "safe" short, in that the technicals are not in place for an immediate move up, particularly once the crossovers occur.
Fundamentally, AOL has always stunk, and I don't expect them to release any more "astounding" news in the near future. I think that AOL is all newsed out for a while. And, if you examine their recent news, it is just evidence of the ultimate demise of AOL. Clearly, they are concerned that their traditional dial-up access is going to wane. I don't think that AOL can make it as a web site, and even if they can, not at the level of the current operation. |
