Happy Girl....I don't usually answer questions from a TA point of view, as I think the Fundamentals are what really drives a company...However, because TA is really a pretty good "hindsight" map I will explain the chart picture to you of where AOL has been and where it's at right now.
AOL ran up out of a breakout base a couple months ago and then reached it's peak at about $167...Any healthy stock will then "correct" about 8-15%, on lower than average volume...A healthy stock will have a slight downward bias as it consolidates, or travels sideways...This sideways movement is a good thing and will continue for several weeks, or even months.This is healthy...The fundamentals will then begin driving this stock up until it breaks old highs and goes on the peak, correct and consolidate all over again at a higher level.
AOL, is consolidating, on lower volume, looking in hindsight...Are there Fundamentals to drive it higher?....Yes, I think so and so do a lot of big Fund Managers who hold, and even more importantly, who just bought AOL because they think its going higher also...Logically speaking, no one is going to take on a large position if they believed the stock was going down.
Hang in there, the big boys are buying at these levels.
Regards, George
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