ABK Watch

The bond insurer Ambac Financial Group Inc. (ABK) opened above the 20-day simple moving average for the first time since April 30 but pulled below that level in morning trading. ABK began showing bull signals last Friday as it pushed above the 78.6% Fibonacci retracement level.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
ABK $1.21

At 12:29 p.m. Eastern

The Fibonacci trellis maps retracement of the rise from the swing low of 51¢ recorded on March 29 to the high of $3.39 on April 13.

Prices tend to pause at Fibonacci retracement levels, such as 78.6% ($1.13). For ABK, the next higher level is 61.8% ($1.61); the next lower, 100% (51¢).

See earlier analyses from May 31 and June 1.

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Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.

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Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.