American Axle Aims Higher
American Axle (AXL) is extending its healthy rally off the mid-December lows with an impressive 7% surge today. The stock began the session with a gap-higher open that lifted shares above a major layer of supply near its declining 200-day moving average. The area just above $10 included AXL's October and December highs and was also the final support zone before the August flush.
Last week, the stock's 200-day came into play in this area, and, as it did in July and early August, this appeared to be a rally stopper. With upside trade running well below trend, a fade from the $10 area seemed likely. Over the previous two plus weeks, AXL had mounted a steady 25% rally, putting it in short-term overbought territory. A healthy pullback after reaching a key resistance level would not have been a surprise. Instead, AXL is powering through the $10 zone and may be on the cusp of a new leg higher....266 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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