The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
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Wednesday, January 27, 2010

AIG $25

Can AIG recover and hold $25?!
Here's a look at AIG going back to the 70's.Here's where we stand for now
We came close to closing in a Hammer candle today, and though the volume wasn't as strong as this issue has seen in the past, it was reasonably high today, with a big order coming in to rescue it from the abyss. Watch the follow-through develop from here to see what kind of a bounce this order manifests. Direct overhead resistance at $25, support now at $23.
It could make an attempt for $28 if it can get the momentum behind it (not a necessarily favorable risk:reward ratio), but it will obviously be affected by any news that may come up.

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