Stock Chart Analysis AIPC
American Italian Pasta Company(Public, NASDAQ:AIPC)
AIPC was one of the stronger stocks in the market over the past several months, rising almost 700% from March 2008 through April 2009. It has been rising steadily over this time, forming small lateral bases, with gaps above the bases following a few weeks later. Recently, it had been forming another lateral base, but instead of clearing it, it gapped down and broke under the base. This may be an important change of character for this stock, as investors that have been used to steady gains, are now facing the prospects for a deeper correction.
Looking at the more recent price action, AIPC broke under the 50-day moving average and has been reversing at each test of the average. There is a small trendline forming over these tests, that has been a good spot for shorting opportunities. AIPC is currently back in this area, and has had three indescisive candles showing a little restraint on the part of buyers. I will be watching for a breakdown here as a possible shorting opportunity.
Good Trading,
Joey
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