Some thoughts on AJL:
Bit of a mixed bag with this one. A weekly bar chart shows price has been making lower lows from September. It recently made an equal high, with a blow off top out of the top of the channel, so we will see if it tries to make a higher low around the $3.50 mark which is horizontal support and the 61% Fib level. It has recently fallen through the bottom of the channel as exptected after a blow off top and is trying to find support.
On a daily candle chart, you can see price has clearly broken through the bottom of the channel after the blow off top with the high volume and long upper wick out the top of the channel marked with a cross. It has not even pulled back to channel and just fallen with a high volume red candle on Fri 4 December. Its currently trying to find support just shy of the $4.00 area. The fact that price is already hovering below it is pretty bearish short term IMO.
Weekly stochastics has recently broken an uptrend, shortly after the blow off top. It is now channeling down making lower lows. Daily stochastics is no longer favouring an oversold condition which is bearish. It has also recently broken down through a triangle pattern which is bearish and i expect it will reach a very oversold area before turning up as recent action indicates.
Acc/Dis has been holding up very well showing positive divergence which gives weight to the fact that I think this will make a higher low and try and break out of the large descending channel on the weekly chart. Obviously a pretty tightly held stock. I would be watching this indicator for an kind break down of a trendline as it can fall apart pretty quick when this happens.
Where to from here? I think its a good chance at making a higher low on the weekly and may try and resume an uptrend by breaking out of this large descending channel on the weekly bar chart. Acc/dis is still looking very nice showing it has strength and wants to move up. Its got some overhead resistance to work through though and could take some time.
[URL=http://img690.imageshack.us/i/ajlweeklyvolume.png/][/URL]
[URL=http://img710.imageshack.us/i/ajlweeklystoch.png/][/URL]
[URL=http://img690.imageshack.us/i/ajlstochastics.png/][/URL]
[URL=http://img690.imageshack.us/i/ajlaccdis.png/][/URL]
[URL=http://img41.imageshack.us/i/ajlrsi.png/][/URL]
