Peppie, my 'technical' calls are very hit and miss. I'm like Adolph Hitler - horoscopes and astrology gave him the confidence to invade Russia - or something like that.
A Head and Shoulders topping development is hard to miss, and a break of the neckline is usually a good indicator. With AEC this approach is qualified by the low volumes. Makes me wonder whether speculation about the chart doesn't run the risk of being self-fulfilling . . . nah, no-one would take any notice anyway.
So just the way I've been musing when pondering the chart - I 'see' the 3.00 level as being crucial and we've been watching a tussle there over the last few days.
I look at the development of the chart from the top in Dec '07 to the breakout in Aug this year as a completed bullish falling wedge following a powerful uptrend. If you draw a best fit trend-line of support through the lows of this falling wedge it comes out at about 3.00. The breakout of August has failed and the price has returned to this support downtrend line. Also if you look back to the start of '06 there were a couple of months around 3.00 where the price stalled as the buyers and sellers were equal.
I just suspect that we'll see further downside if this 3.00 level gives way significantly. By that I don't mean an intraday movement to 2.95 as today, but a few days closing below 3.00. The fact that the breakout failed just as it was approaching the previous top at about 5.00 is also a bit gloomy. Maybe a resolution of the PSI payment will decide the direction. Just my idle thoughts.
AEC Price at posting:
$2.95 Sentiment: Hold Disclosure: Held
