AYI initially caught my eye from the daily price action. The March 2014 resistance has been retested and is now support. Price is above the $150 half figure. And yesterday's breakout bar was very bullish on higher volume.
On the weekly chart the inverted head and shoulders also stood out as a reason to go long on this stock. A measured move would take price to above $180.
However, I am not confident that the right shoulder is correctly placed. At first glance it seems an ideal formation - the second shoulder is higher (preferable in an uptrend) and the neckline is sloping up (also preferable in an uptrend). But looking at volume the second rally was down on volume, which is not what we would want to see. This leaves some doubt as to whether the measured move is valid.
Overall, this is a buy opportunity (although I will not be trading it due to the thin volume) but a target of $180 is not realistic, at this stage.
On the weekly chart the inverted head and shoulders also stood out as a reason to go long on this stock. A measured move would take price to above $180.
However, I am not confident that the right shoulder is correctly placed. At first glance it seems an ideal formation - the second shoulder is higher (preferable in an uptrend) and the neckline is sloping up (also preferable in an uptrend). But looking at volume the second rally was down on volume, which is not what we would want to see. This leaves some doubt as to whether the measured move is valid.
Overall, this is a buy opportunity (although I will not be trading it due to the thin volume) but a target of $180 is not realistic, at this stage.