By: Scott Redler
I’m not sure what exactly their business model is at this point, or if they can even survive their recent reincarnation, BUT the chart tells me this one can go higher. The company came re-public in November and it’s been in a tight accumulation for 5-6 months. If you thought this company was a ZERO and were short, would you not cover if it broke above $27?
Someone took this public and now maybe all the stock is in safe hands for a move higher. I implemented the same strategy when CIT Group (CIT) broke above its opening day high a few months later ($30.66). AOL will be on my radar the next few days. I am now long a feeler, and with good volume through $26.50-27 I will be adding into the position. We could easily see a squeeze to the $30+ range.
Sometimes you just need to trust the chart and not look at the business model too much.
