Opportunity in IACI Setting Up
Weekly charts clearly define long- and intermediate-term trends, but can, also, signal short-term countertrend trading opportunities. One such short-term opportunity is setting up on the charts of IAC/InterActiveCorp (IACI), a media and Internet company that operates Web search and social networking properties.
The stock spent most of 2012 forming a large head-and-shoulders pattern on the weekly chart. In the process of constructing the right shoulder the 50-day moving average crossed below the 200-day average. The neckline was broken in January this year, but a hammer candle quickly reversed the downward pressure and the stock price stabilized above $40. This month it broke back above the 50-day moving average. The period of horizontal consolidation allowed for a technical recovery, with the relative strength indicator now back above its 21-period average and stochastics and the moving average convergence/divergence indicators making bullish crossovers. Overall volume picked up in February and accumulation/distribution is well above its 21-period average and Chaikin money flow has turned positive....259 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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