AIS

This is another attempt at buying down near support on an uptrending stock. AIS has had a nice run over the last year and had traded between $1.00 and $1.30 for about 6 months prior to breaking in early March. That run got it up to a high of $1.55, it has now drifted back down to the $1.35 previous resistance which I had marked as our new support level.

I must not have been paying attention on 3/30, as we did touch down on the support and I missed it. But on 3/31, I was watching more closely and received another bounce that pretty much solidified my theory. I purchased 1400 shares at $1.36 as it was making a strong case for $1.35 as support off the 15-minute chart.

Targets and Stops

The next minor resistance is at $1.48 and then the 52-week high of $1.55. So, the $1.48 is the immediate goal, but I don't think it is that strong as it hasn't had much time to develop, the volume up to $1.55 is also relatively small, so my overall target is the $1.55 area.  My stop on this one is with the minor resistance around $1.28 which also coincides with the 50-ma.  This gives 14% upside to 5.8% downside or basically a 3:1 risk to reward.  The added benefit is the potential for a breakout past $1.55, but I don't want to give that too much leeway because it could just as easily bounce off of there and glide back down to this $1.35 level.