Betting on an American Axl(e)

• Posted by Greg Harmon
• on April 6th, 2015

“She’s got a smile that it seems to me
Reminds me of childhood memories
Where everything
Was as fresh as the bright blue sky”

Clearly Axl Rose was singing about the recent chart in American Axle & Manufacturing ($AXL), the company who’s ticker symbol he was named after. That smirky smile that took control in the chart from mid 2013 until the edge lifted up to end the year. The chart below does show nothing but blue sky above.

From a technical perspective the chart shows a run up into that long retrench that measured a gain higher, a Measured Move completed. But that leg up also gives a projection as to how far into the bright blue sky it might rise. A good target would be 32.50, and with a natural stop at the break out level at 25.75, this gives a very high reward to risk ratio. No wonder Axl is always swaying as he sings this song.

Get my new ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 2015 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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