September 23, 2009

ABK Ambac Financial

ABK's consolidation here around resistance is forming a nice looking triangle. It's congesting right around resistance which is very bullish. Add that healthy consolidation and this is a good set-up for a buy here on any pop in price. Especially on heavy volume over 1.81. I'm going to front run it and nibble on it here today. These are the kind of set-ups(triangles) that have been working so well lately.

click for bigger picture

ABK really gave off some easy signals to read in hindsight. There was a hammer at the bottom on 8-17 and a doji off that recent consolidation.

full disclosure:no position at time of writing. Order pending.