AOL (AOL) at 12.18 Bull trendline underpins further upside (BUY)

AOL tested the 7-1/2-week bull trendline (off the 10.06/11.07/11.28 lows) which held. Bulls posted a bullish outside day (04 Oct) supported by the RSI studies turning upwards. While the bull trendline holds, there is scope for further upside towards 13.04 (Resistance 1) then 14.92 (Resistance 2) near the wedge upper bounds. Clearance there would stage 14.92 (Resistance 3) which is near the 11-month falling trendline line (off the 27.65/22.47/20.83 highs).

However, a clean loss of 11.28 would confirm the trendline break and risk a 10.06 retest (Support 1). Further weakness there would allow bears to seek the Fibonacci projection at 9.55 (0.618x 16.69/11.07 from 13.04, Support 2) which shields the equality target at 7.41 (16.69/11.07 from 13.04, Support 3).

Trading Indication:
Short-term (or Intraday): Buy at 11.50 or lower;
Target at 14.92 and higher;
Stop Loss at 11.25 (2.0%)
Long-term: Possibly sell higher