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ACOM May Test $16.50 Support Level

|Includes:Ancestry.com Inc. (ACOM)

On October 31, 2011, we presented Edson Gould's speed resistance lines [SRL] for Ancestry.com (NASDAQ:ACOM). At that time, we presented the case for ACOM potentially declining to the $15.23 level.

On February 3, 2012, ACOM rose as high as $33.09. This was just above the conservative downside target that was established after the peak in ACOM on April 29, 2011 at $45.70.

Today, Ancestry.com (ACOM) declined -16.44% to the $23.83 level. The current price is consistent with a significant SRL support level. If ACOM were to decline below the $23.50 level, the next support level would be $16.50, the prior extreme downside target.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: ACOM