Wednesday, May 25, 2011

On the Other Side of The Euro Bank Coin

Irish Bank, AIB looks like there may be a short to swing trade opportunity in the making.

 The shorter charts are a bit random, but I found this 10 min leading positive divergence to be interesting considering where AIB is.

As you can see, AIB is sitting right on some old support, therefore you have a nearby stop, I wouldn't use the exact trendline in case of a shakeout, but the set up here seems to be a fairly decent risk:reward opportunity.

Remember to check dividends and the ex-div. date when shorting companies as you will be responsible to pay the dividend if you are short when it goes ex-dividend.

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