Remember AOL? Take A Look At This Play
Dragonfly Capital | Aug 20, 2014 04:53PM ET
Do you know anyone that has an AOL (NYSE:AOL) account? Or uses AOL to access the internet for a fee? If you answered 'yes', then tell me, are they over 60? There is nobody that uses AOL anymore that does not have grandchildren. At least that's what you are lead to believe. But AOL's stock-price chart says otherwise. In fact, it has been broadly moving up since 2012, albeit with a slight pullback this year.
But the rebound since May makes it look ripe for a trade right now.
Looking closely at the chart for the last 2 years shows a rising trend support and an important level at about 44. The first touch in November 2012 seemed to be a fluke but a number of touches since November 2013 shows that was clearly not the case. Now it is back there again. And the momentum indicators are supporting further price action higher. Time to see if it has another ride to 51 in it on a move over 44. Or, if the dial-up modem does not connect and can't get over 44, the ride back down to that support line.
Either way, it's a 15% move.
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