- Posted by Greg Harmon
- on September 6th, 2012
Yes that is right. American Apparel, $APP, what was once a company left for dead, and still a risky turn around play, is now starting to look good from a technical perspective. The chart below shows a Rounded Bottom forming. The Relative Strength Index (RSI) is bullish and rising and the Moving Average Convergence Divergence indicator (MACD) is positive and supporting a push higher. A move over 1.22 sees resistance next at 1.55 and then 1.80. Moving out to the weekly chart shows
that the move higher has a lot of room to get up to the 23.6% Fibonacci retracement at 4.36. The RSI on this timeframe is also bullish and rising, with a flat MACD. The Bollinger band expansion higher looks good as well. But focus on the Andrew’s Pitchfork. The recent thrust higher started after a break above the Hagopian Trigger Line, a buy signal. Don’t follow the Pitchfork? That’s ok,
notice then that the 100 week Simple Moving Average (SMA) which has closely approximated that Trigger Line, was also broken for the first time in 4 years! This is not for everyone as it still has a hard road ahead. But Hagopian Trigger, over the 100 week SMA, Rounded Bottom, yes it has a lot of positive things going for it. Oh, and one more thing about that Rounded Bottom. American Apparel seems very adept at dealing with Rounded Bottoms.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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