Tuesday, September 22, 2009

AIG and the Breakout-Pullback Setup

Back on September 9th, when I posted about entering AIG, it has pulled back post breakout and showed a great accumulation pattern.

Since then the stock has catapulted back up towards the recent highs. I entered at $37, took a partial exit and am still holding a positon near $52.

The key features of the breakout pullback setup include:

1. Price breakout over resistance
2. Breakout on strong volume
3. An orderly pullback, with small price bars and decreasing volume
4. Volume pattern should show accumulation

No comments: