Now here is a very interesting stock that seems to be setting up for a very nice move higher.
AGL is a stock I have traded for years and one of the main reasons I have continued to trade the stock is that it responds very well to technical analysis. There are some stocks that just don't seem to move based on technicals and then there are the average ones and then there are stocks like AGL that for whatever reason respond well to technicals.
The chart below is the 15 min chart and was used simply to confirm what I could not see on the daily chart, and that is if the rally was in the form of a trending move and it is.
Notice that the three legs up are just about equal in price and time, which is always a good sign.
Scroll down to the daily chart now.
You will notice the daily chart has given us my favorite chart pattern, Three White Soldiers!
If you recall, this is a very reliable trend reversal pattern and when you add taking your position upon a decline to the middle of the second candles body it bats better than 85%!
Notice also, that the middle of the second candles body comes in at about 16 1/2 and a 50% correction of this most recent rally comes in at 16 3/8 so we have some pretty strong support in that area and this is exactly where I would be looking to go long.
The target from the triangle comes in at 23 12/2 which represents a better than 40% move and more than likely in a fairly short period of time.