weekend charting 29-01-10, page-76

AZZ is a bit of a conflicting chart ATM....on one had it looks like shes had a blow off top on Jan 11 but on the other hand, a lot of volume has come back in recently.

She channeled up to begin with then broke out of this channel. When I project the original channel up at the same width you can see how price has exploded through the top on high volume and left a long upper wick. Since then price has dribbled back down on low volume to pick up the top of the previous channel which is now possibly a new channel. Hope that makes sense!

Stocks often have channels on top of channels at the same width. Its just a way of projecting a target into the unknown and adds weight to the blow off top theory.

Stochastics have just turned down and are in a triangle pattern. RSI is trending down and looks like its got a little more downside to go until it hits support.

All up, she looks a little dicey even given the recent volume. Acc/Dis is still very strong, but is currently in a bearish flag pattern with the flag moving up on its lows which will likely have the same outcome as a rising wedge - a big break down. Price has also made a lower swing top on Thursday so it could be doing somthing like the last chart there channelling down. If I were looking for an entry, I would wait until that downtrend line is broken.

Heres some charts: