If the company is correct in its assumption, then AONE could be a lucrative investment.
The second sign traders want to see is AONE reversing the lower lows and lower highs.
By drawing the channel shown above, a trader could crystallize the area of importance for AONE.
Use the three steps above when watching AONE or any other trending stock poised for a turnaround.
As of today, AONE has accomplished all three of those requirements, albeit it in a different order.
Traders should watch for AONE to settle in a bit from the news before initiating any position.
First, AONE needed to enter a basing period where it quit going lower and moved sideways for a time.
Thirdly, I mentioned that traders should watch AONE closely as it cut above its daily 50 period moving average.
More likely than not, AONE will pull back into the base pattern again.
In this specific case, once the 50 day flattens out and starts moving higher AONE could already be 30-50% higher.
In early 2010, I watched AONE to see if it would form what is known as the IPO double bottom.
From the start of the year, AONE has made lower highs and lower lows in a very systematic, stair step manner.
If AONE gives back the 15% it has tacked on today, traders would not want to be anywhere near this name.
Next, AONE needed to begin carving out higher lows and higher highs.
However, in the case of AONE, the pattern never transpired as AONE continued to fall with the general malaise of the overall market.
Granted, AONE may continue to rip, and in that case traders must move on a find the next hidden gem ripe for the picking.
If not, I would not encourage traders to buy at these elevated prices, but instead wait and see if AONE pulls back a bit.
After making a series of lower lows and lower highs the preceding six months, AONE appeared as if it wanted to build a base.
The big push for AONE is the potential for using its technology in hybrid electric and electric cars as the cars start to be mass produced.
The final big road marker that will indicate AONE is potentially ready to move higher is when it crosses and stays above a key moving average.
While not a fundamental trader in the least, I do remain cognizant of earnings releases and AONE is set to report August 10th after the close.
There are three big signs that traders will want to focus on that will indicate that AONE is ready to begin an up leg of a sustained nature.
Yet-Ming Chiang, professor of ceramics who has co-founded A123 Systems (AONE) and American Superconductor (AMSC), developed a technology that would allow batteries to produce a different kind of energy.
Shoaib aired his dissatisfaction in the Pakistani media over Saqlain Mushtaq and Abdul Razzaq being allowed to skip aone-day series in Australia in June to play County cricket in England.
Shares of electric and hybrid car battery maker A123 (AONE) have spiked this morning after Goldman Sachs analyst Mark Wienkes upped his rating on the stock to Buy from Neutral.
Founded in 2001, AONE is not even close to turning a profit at this stage of the game, so any long side play of AONE is based purely on the technical read of the charts, and nothing more.
Traders would have needed to have an order already in, or be sitting in front of their screen this morning, as AONE flew through that mark in the first ten minutes of trading and has not looked back.
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