Monday, February 14, 2011

Alliance Global Corporation (AGI)



It would be much safer to assume that it will simply range trade til kingdom come, unless it does a convincing breakout - strong candlestick pattern and heavy volume.

Breakdown to the downside - support at 10.90 - will prompt a sell signal.
Breakup to the upside - resistance at 13 - will prompt a buy signal.

To lessen the risk of the trade, take profits/take cover after the breakout and buy back at the breakout point to test the strength of the trend.

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