Wednesday, November 7, 2007

AJO - ouch!

AJO = 0.165 (-5.7%)

AJO formed black candle with lower high and lower low. Bears might be winning.

Dislosure: bought AJO at the open 0.18 due to high demand at pre open and sold 0.155 when it traded below the previous day's low of 0.16, it seemed that it was about to form a bearish engulfing.

Now that we have the today's price action in the chart we can see that AJO came from 0.105 and surged to 0.185. If AJO were to have a healthy retracement it should bounce at the 38.2% retracement (0.155), which it hit today. If AJO forms higher low tom it might indicate a bounce from that level today and will likely test 0.185 and break it.

Personally, since I just got burned by trading AJO today I will inhibit myself from trading AJO in the near future.

Good luck to all AJO traders!

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