AIB Watch

Dublin-based Allied Irish Banks PLC (AIB) is trading more than 9% above Thursday's close with volume running nearly 40% (so far) above the prior day's. There was no company-specific news to buttress the price leap; Irish regulators say they'll be intensifying bank supervision.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
AIB $2.84

The price gain broke past near-term resistance at $2.83 before retreating to about that level. The stock has been declining since hitting a swing high of $4.75 in late March.

Reversal Levels

• $3.73, +31.3%
• $2.93, +3.2%
• $2.84 <== You are here.
• $2.10, -26.1%

Longer term, AIB presents the profile of a troubled bank amidst the collapse of housing and financial markets, which were severe in Ireland.

The stock peaked at $64.38 in February 2007, declined to 72¢ in March 2009, did a bounce back up to $10.42 in September 2009, and has declined since. It has shown a lower high from the peak, but not yet a lower low.

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Disclaimer

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.

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.