Monday, March 2, 2015

[AA] likely ready to break out.

In the backlink I modeled a 4th wave triangle in progress. Since that was way back in January you would think the triangle would have finished by now and 5th wave even done.  Instead, the chart added another internal wave to the triangle without breaking any EW rules.  The e wave throwunder just put in a double bottom so this is a really safe place to jump in for a nice, safe 25% ride over the next 4-6 weeks.

If you jump in near the open tomorrow, note that your stop is $14.69.  So even if you don't try to catch a dip your exposure is limited to about 25 cents.  It can fall back to ~14.90 or even $14.89 before powering back up through the lower rail into the channel but does not have to do so before moving up.

If you are in to relatively safe (if fairly slow) profits with risk that is easy to spot should it pop up, this is a good play for you.


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