Wednesday, November 17, 2010

Trade Watch: AA

We may have found our entry point into Alcoha AA. The how the stock has retraced to the 100 dma at $13 a share. Notice how the stochastics are on the dead bottom and turning up. The set up is almost perfect to form a higher low. Does this mean that $13 is a higher low? No way. I will look for AA to break back up through it's 20 dma before buying shares. Then I put a stop at one dollar below the market and sleep like a baby. Don't jump the gun, let the market make the first move.

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