Sunday, July 22, 2007

AGL Test and Lesson Time

Take a look at this weekly chart of AGL and tell me if it would be prudent to purchase the stock now, or wait for it to settle back and test the lows.

The answer is in the past.

I will post the answer this week.

Also look below at the daily chart of AGL.

If you recall when we were looking at AGL as an educational tool that demonstrated a consolidation zone. The stock broke out of the zone in the opposite direction, but you can plainly see that it is a very useful tool and something you should always watch for.

Notice also, that once the stock broke below the bottom of the consolidation zone, it came back to test that level once more and failed. From there the true decline began.

No comments:

Trend Analysis LLC Headline Animator