AHL is a $2.2 billion financial company that provides insurance and reinsurance products and services worldwide. While the overall market has been climbing, AHL has pulled back to its 50 day SMA, printing a reversing doji candle on Monday in the process. This recent price weakness has also been enough to test its intermediate-term uptrend line. We like AHL at the current price, but would sour on it if we see a close beneath $27.00, especially if heavy volume accompanies that move. Topside, a move back up to test the recent highs near $28.75 would seem logical.

KONG is a $265 million services company that provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. KONG reported earnings after the bell on Tuesday and it was trading higher initially. That could make for some additional volatility on Wednesday. Therefore, it might be best to hold off and let the stock settle down a bit before considering it for a trade. Technically, however, KONG did put in three recent consecutive lows around $7.15-$7.25 after selling off dramatically year-to-date in 2010. The candlestick on Tuesday was as bullish as any in 2010, except perhaps the first trading day of February. Unfortunately, that came when the MACD was below the centerline and pointing straight down. Momentum was clearly on the side of the sellers and KONG quickly moved lower again. This time, KONG has begun to rise with a strong positive divergence in place. A move up to test resistance near $9.10 is what we'd look for. This could also be a 50 day SMA test as the declining 50 day SMA currently resides at $9.49. To the downside, an intraday move below $7.15 or a close beneath $7.35 should be respected.

F is a $46.3 billion consumer goods company that designs, develops, manufactures, and services cars and trucks worldwide. This has been one of the best performing stocks over the past 4-5 months as it's doubled from $7.00 to over $14.00. But perhaps the most bearish candlestick during this period surfaced on Thursday as a dark cloud cover candle printed on massive volume. F has been overbought for the better part of 2-3 weeks so this reversing candle takes on more significance. The MACD remains solid, so we'd only look for a temporary pullback. A test of the 20 day EMA is what we'd look for while any INTRADAY move above Thursday's high would be an indication to cover a short position.