Tuesday, November 22, 2011

Autonation Inc AN

Technical Analysis

We can see it made a triple top and triple bottom, concluding that its in a trading channel. The support (bottom) is at ~$32.5 and the resistance (top) is at ~$40. Currently, we may see a bounce to the upside, but don't be greedy and wait until $40 to take profit, or if you do, make sure you put in your trailing stops so you don't risk losing all your profits. In case it does a reversal and break through, set your stop lost (suggested ~$33) to reduce your risk. Of course, all this also depends on the overall market condition



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