Sunday, February 22, 2009

ACC Analysis for 02.22.2009


Monthly chart shows stock price remains bearish as it is below all key moving averages on this timeframe. However, backend support @ $17.63 held, as the bears were unable to close the stock below that level on a monthly, despite dipping below that many times.

Weekly chart shows possible buy signal/pattern setting up off this timeframe. We currently have a test of the November 2008 low, where aggressive buyers stepped back into the stock. Let's see if we get any follow through early next week to the upside. IF we do get upside traction, THEN look for the market to retrace the last leg down from the high made in October 2008. Should this scenario play out, THEN the first upside target could easily be the .618 fib level at $28.64.

Daily chart shows a bullish gartley butterfly pattern in play. Friday's price action created a bullish engulfing candle. Look for follow through next week. IF we get any traction to the upside, THEN the upside targets on the radar will be the .618 fib level of $21.27 and the .786 fib level of $22.46. These are the short term upside targets. Trailing stops would be a good idea as this pattern could be retracing a larger range, which would mean greater profits (look to monthly and weekly chart for upside targets for this larger range/pattern).

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