AIT - Buy the dips

AIT first gapped strongly of a long term sideway consolidatin on 11 Aug (earnngs beat) but soon gave back all the gains as it started another round of consolidation (this time forming a rounded bottom).

It is not uncommon to see "false/failed breakup" especially during periods of uncertainties in overall market. What is important is to note the "relative strength" of the stock in comparison to the index.

The cup consolidation was forming with a higher low (on weekly) while S&P500 was making new lows, not to mention that AIT is also well above it's 200day Moving Average, showing good relative strength to the market.

AIT finally broke out of a cup consolidation last Friday, probably in anticipation of earnings that is expected out on 3 Nov. There is a chance that the stock could continue to go higher with it's new support @140, or, it could once again attempt another smaller pullback, this time to form the "handle" of the cup that was formed.

I would put initial stop loss just below 136. Let's see what happens.


Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
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