WED 8/19: AFL – CALLING A FINAL SELL SIGNAL @ $119.84 -2.6%

10:11 AM – The stock is gapping down this morning and breaking below our previously noted ROUND-$120 support on increased volume. The combination of a gap lower, loss of support, and expanding selling volume represents multiple bearish technical violations. Calling a 2ND yet FINAL SELL SIGNAL here and to close out coverage on this selection.

ULTRA Trader’s Tip: Multiple Violations Strengthen the Signal

  • A gap lower immediately shows increased selling pressure.

  • Breaking a previously identified support level adds another bearish technical violation.

  • When weakness is accompanied by increased volume, the evidence becomes even stronger—respect the signal and move on.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

THU 7/16: AFL – CALLING A BUY SIGNAL (1/3) @ $123.01

3:53 PM – Shares of this insurance leader are advancing from their 10 DMA with volume running above recent levels. Technically, there is very little overhead supply near these recent price highs, which is constructive bullish action. We consider this a technical BUY SIGNAL.

ULTRA Trader’s Tip: New Highs = Less Resistance

  • Stocks trading near new highs typically have less overhead supply from trapped sellers.

  • Advances from the 10 DMA accompanied by improving volume are often signs of institutional accumulation.

  • Beginning with a 1/3 position allows you to participate while giving the stock an opportunity to confirm its strength before adding more capital.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.