AEM - Nov 9, 2008

charts courtesy of stockcharts.com

"Just when I thought I was out... they pull me back in"
– Michael Corleone’s Character in Godfather III

I really did not want to take the short side of AEM. But old habit die hard and I could not resist it. I won’t bore you with every detail. This is my trade chart, and that’s that.

The daily chart is right in the middle of things, which is one way of saying it can go either way. Price is between 8 and 21 day MA, if it wants to go up, it needs the support of its MAs, and for that 21-day MA has to start pointing up. I have done some pivot calculations to perhaps guide me better with the stock. They are guideline and not absolutes

Trend is still down, and that is the most important thing to keep in mind.

There is a possible inverse head & shoulder formation being set up on shorter time frames

It’s slanted , and may be looked at as other formations as well. The point is that there is the possibility of a burst to the upside, and I may not be doing anything with it till it resolves its short term picture one way or the other.