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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
