AOL Is On The Line

  • August 6, 2001
  • Eddie Kwong

Flipping through thousands of charts the way I do sometimes, things cannot
help but jump out at me. Here is an interesting setup that is taking shape in
America Online
(
AOL |
Quote |
Chart |
News |
PowerRating).

It is the kind of thing I like to find. Multiple factors that seem to all
be in agreement. AOL is up against the following:

  • In a downtrend and at the top of downsloping trend channel
  • Resistance at the 38.2% retracement of the May highs to July lows.
  • Resistance just below its 200-day moving average
  • Resistance just below its old April 1 support
  • Fading volume on the recent rise from July lows

Plus, we have the overall market in the midst of a downswing. If the market
continues to follow through from Friday’s breakdown, AOL could get carried
with it.

Eddie