AXL has a very nice large pattern in the form of an inverse head and shoulders bottom. This is a high reliability pattern and it is occurring over a time frame of 1.5 years which makes its breakout implications very significant.
The right shoulder portion of the pattern has a saucer or scalloping type formation and is set up for a nice breakout move above the key horizontal neckline level defined by the red dotted line on the chart.
In addition, it is noteworthy to point out that AXL has a short position in it that is somewhere north of 30% of the float. This is important within the context of this large pattern because it could provide the necessary fuel and volume for a sustained meaningful breakout.
AXL is an auto parts supplier. The entire auto sector still appears to be in recovery mode. You just have to look at the shares of F Ford Motors or another auto parts supplier (DAN) to get the picture that this sector is in sustained recovery mode.
If AXL is able to get a breakout going above the red dotted neckline I would like to see it do it on greater than 12 million shares.