aio - chart

Some thoughts on AIO:

A weekly bar chart shows that price has based nicely above $1.50.....(the red line) with price making higher lows until it breaks $1.50 on high volume. This area should now provide solid support. You can see also price has just broken out of the $1.75 resitance level and closed above it - a very good sign.

On a daily candle chart price has broken through $1.75 leaving not much short term resistance. A spike in volume over the last week is a good thing. You can also see a rough inverted head and shoulders type pattern where the green line on the chart is the neck. This is bullish. Recently price has been bull flagging up nicely. I expect price will continue up from here perhaps meeting resistance at around $2.00.

Acc/Dis could be better showing that it hasnt broken out of triangle as price broke resistance. Doesnt mean a rally wont happen, it just shows a little weakness in the break out, relative to the last few months.

Daily stochastics recent showed a little negative divergence on the breakout making a lower low, but is currently moving back up. The main thing here is that it has been staying well and truely in the overbought area showing strength overall.

RSI has recent broken out of a descending channel and it currently looking to break out of an ascending triangle. Very bullish from a an RSI perspective.

All things considered, the break out of $1.75 is one that I would have liked to have caught. I think its got some upside here to $2.00...I think given the lack of immediate resistance, this should move up quite quickly and volume is increasing. Its had a nice tight consolidation compared to the rest of the basing pattern which is a lot looser. The tighter the better IMO as it acts like a coiled spring when price does expand out of a resistance area being $1.75.....

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