Thursday, July 23, 2009

Recovery Plays: AAX lagging for the WIN?



AAX - a few appealing reasons are showing for some buy action.

1. ex-Dividend price August 28, and it's looking at about 20c. Good yield and a potential price rise before this date.
2. this stock is leveraged to the commodity rebound and it seems to be lagging, refer to chart below.



3. downside looks limited at 3.48 support - I'll set a stop loss at 3.44. The upside is at least 4.70 given the current buying frenzy in the market. 98c to 27c


4. From a charting perspective, the 3.50 support line, the 100MA, the uptrend line all coinciding, making for a pretty much perfect entry price 3.60-3.70 range.