Stock Chart Analysis AFAM

Stock Chart Analysis AFAM

Almost Family, Inc.(Public, NASDAQ:AFAM)

Lately it seems that any stock is fair game for a total melt down, regardless of its performance through the recent market downturn. AFAM swam up current through most of 2008, clearing a flag type consolidation in early November to hit all time highs. It then settled into a triangle that appeared to be setting up for a continuation move higher. However, AFAM instead broke down through the triangle and surged under the past two consolidations. This put all buyers for the prior 5 months underwater. This probably came as quite a shock to most shareholders, as AFAM appeared immune to the bear market. Many of those traders may be looking to get out close to breakeven on any bounces into the prior base.

AFAM just had a bounce into the lower part of the prior base which also coincides with its 200-Day moving average. It appears to be quickly failing at this level, and could be setting up for new lows. Slow Stochastics seems to be confirming this as it is crossing back down early, before reaching overbought levels. While AFAM may not head lower in a straight line, it does appear that the $35 area poses some stiff resistance and could reject future bounces. This area would probably offer some decent shorting opportunities with a tight stop loss area.



Good Trading,

Joey