Does AOL Support Higher Prices?

With shares of AOL (NYSE:AOL) trading around $36, is AOL an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for a Stock’s Movement

AOL is a web services brand company, offers a suite of online content, products, and services to consumers, advertisers, publishers, and subscribers worldwide. The company was hot during the internet boom and later died down after its merger with Time Warner. Can the company execute much like it did in the late 1990s? Let’s analyze some relevant factors.

T = Technicals on the Stock Chart are Strong

Since AOL was spun out by Time Warner, the stock had a dip but moved onto a strong uptrend of higher highs and higher lows. Currently, AOL stock is attempting to head towards last year’s highs. Key simple moving averages can provide insight into the trend and strength of the trend. What are the key moving averages? The 50-day, 100-day, and 200-day simple moving averages. AOL stock is currently trading above all of its key but untangling averages. This indicates that the stock may be getting ready to head towards higher prices…