As with the previous mentioned equities, Allegheny Energy (AYE-NYSE) also shows significant signs of upward potential. Most notably is the price action which occurred between 12/05/08 and 12/29/08. Here we witnessed the development of a 4th wave triangle which broke out up. This triangles breakout then subsequent price action returned AYE comfortably back to a 38% retracement value of $31.71. A negative factor affecting the AYE rally scenario is that we see a decline in volume throughout its initial 5 wave sequence. While this volume development is not as bullish as it could be, it does at the same time however confirm the 5 wave sequence of having the most volume during W3 and less throughout W5. The first upside target is $39.69 and the second target is $44.77.
Wednesday, January 21, 2009
Allegheny Energy Inc
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As with the previous mentioned equities, Allegheny Energy (AYE-NYSE) also shows significant signs of upward potential. Most notably is the price action which occurred between 12/05/08 and 12/29/08. Here we witnessed the development of a 4th wave triangle which broke out up. This triangles breakout then subsequent price action returned AYE comfortably back to a 38% retracement value of $31.71. A negative factor affecting the AYE rally scenario is that we see a decline in volume throughout its initial 5 wave sequence. While this volume development is not as bullish as it could be, it does at the same time however confirm the 5 wave sequence of having the most volume during W3 and less throughout W5. The first upside target is $39.69 and the second target is $44.77.
As with the previous mentioned equities, Allegheny Energy (AYE-NYSE) also shows significant signs of upward potential. Most notably is the price action which occurred between 12/05/08 and 12/29/08. Here we witnessed the development of a 4th wave triangle which broke out up. This triangles breakout then subsequent price action returned AYE comfortably back to a 38% retracement value of $31.71. A negative factor affecting the AYE rally scenario is that we see a decline in volume throughout its initial 5 wave sequence. While this volume development is not as bullish as it could be, it does at the same time however confirm the 5 wave sequence of having the most volume during W3 and less throughout W5. The first upside target is $39.69 and the second target is $44.77.
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