Ambac ABK Analysis 1/8/09 January 8, 2009

Ambac ( ABK ) stock is breaking out to the upside today ($1.70 ), 1/8/09. It's time to take a look at this stock once again. Today's Biggest Gainers

Ambac ( ABK ) Stock Analysis - Technical Analysis - January 8, 2009

Support Levels - $1.50
Resistance Levels - $1.74 & $2.00

Ambac ( ABK ) is doing something today it hasn't done in three months. Break up through its 50 day moving average. The 50 day moving average is located at $1.53 and technically this signals a buy signal. ABK has resistance at $1.74 and $2.00. The volume has been strong in the first 90 minutes of trading today, over 15 million shares.

If I were getting long this stock ( I don't own it as of yet ) i'd place a stop loss order at $1.50 or if it breaks $2.00 and runs a bit, i'd move it up to $2.00. I do not see any news causing this rally but Ambac broke though Monday's high of $1.63, another bullish indicator.

Furthermore, this appears to be a technical breakout vs a fundamental break out. Keep an eye on the above support and resistance levels.

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