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.

CLICK/TAP CHART TO ZOOM
Chart services courtesy of stockcharts.com. Annotations by James Taulman.