Aspen Insurance Holdings
Last up is mid-cap insurance firm Aspen Insurance Holdings (AHL). Aspen has been locked in an uptrending channel for all of 2012, rallying higher in between well-defined trend line resistance and trend line support levels. Those boundaries make it significantly easier to spot the high-probability moves in this financial stock.
Right now, AHL is sitting up near resistance, which makes another move lower look likely. After that, investors should be looking for an opportunity to buy on the bounce off of trendline support.
If the stock's in an uptrend, why wait? Well, the best time to buy a stock that's in an uptrending channel comes at support -- it's the place where shares have the furthest to move back up to resistance (the top of the channel) and where they have the least distance to move through support.Since a breakdown below support means that the channel is broken, support is also a logical place to put a stop below to ensure minimal risk. The ideal AHL trade will take a little patience, but it should be rewarded in the end. To see this week's trades in action, check out the Technical Setups for the Week portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV