Here’s an analysis of Aetna (AET) that should help.
Discussed in this article: Aetna Inc. ( $AET )
I want to just to take a quick look at Aetna ( NYSE:AET ). This is one of those stocks that are in the upper right hand corner and it still seems like it’s ready to keep going higher.
Look at the weekly chart, you can see the stocks been in an uptrend for quite a while. Wouldn’t it have been nice if you had bought it back in 2008, down here at the low? Somebody did, but that person is not listening to this video.
If you look at the weekly chart you can see this stock just meandering up along the upper Bollinger Band. There’s nothing wrong with this uptrend. Stochastics grossly and perpetually overbought, that’s what we like to see, that shows strong upside momentum.
The thing that I see here, in the daily chart, is that the lows in these stochastics are, generally speaking, above the twenty-line. There’s a 20 line, you can call it a 20 percent line and an 80 percent line. It just marks the middle of the range, the lower range, and the upper range.
And so here, with stochastics, one of the things that I like to see is, I like to look at where the lows are relative to the highs. So here the highs, it seems like they’re always above this upper line and the lows, well every so often here you get a move. But for the most part the lows are within the middle part of these stochastic areas.
So I think Aetna ( NYSE:AET ) is a stock that you can buy right here, right now, as long as you have a fairly long-time horizon; meaning more than between now and next Wednesday. This is a stock that you just want to hold; the dividend stinks, there’s no dividend to speak of, but the uptrend is intact. It’s one of those few stocks that’s just trending higher, that doesn’t look scarily overbought like it’s about to reverse.
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