Buying Assured Guaranty Stock due to Support Level Confirmation

A double confirmation of the support level at the daily chart of Assured Guaranty stock and MACD divergence would be two reasons for me to buy AGO stock today. It is not the first time I am looking at the AGO stock charts. Back in December Assured Guaranty stock was one of nine stock picks for position stock trading that eventually gained almost 100% in 3 months! I picked AGO stock when shares were trading for $9.70 and the price skyrocketed up to $19 in March 2012! The insurance stock has yet retraced back to $12. I often trust support and resistance, especially when they are confirmed by bullish tweezer bottoms (known also as piercing line or railroad tracks) and long bullish engulfing candlesticks.


I will most likely set my stop loss at a couple of cents below $11 and aim for a profit target at $18. That means I will stand to lose $1.5 per share or win $5.5 giving a reward-to-risk ratio of 3.5.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in AGO over the next 48 hours.