Earnings did not show a pretty picture for AOL, Inc. (NYSE:AOL). The stock is tumbling today after missing profit estimates. While down big on the day, it does not mean AOL, Inc. is a good buy. In the same respect, it does not mean it still has more downside. To determine where it is going, we must look at the chart and find the key support level where reward becomes large while risk is diminished.
When analyzing the chart of AOL, Inc., it is clear the stock has more downside to go before it hits significant support. In fact, if you look at the weekly AOL chart, there was a great bear flag that formed, triggering to this epic collapse today. It is amazing how the charts can predict a move like this in AOL, Inc. Where is the significant support? The first AOL, Inc. level is at $29.45. This is where large institutions start taking note and looking to accumulate.