I like these cup and handle type formations where the handle forms just below the prior high. The handle breakout can usually cause enough of a push to eclipse the old high. A move above the old high then tends to attract more traders which can further add to the push.
The reward:risk on the trade is mediocre at 2:1. This is a second-chance entry based on a trade I published last month. Based on the continued consolidation (more coiled) I have expanded the original profit target upward.
The breakout is occurring today, but ideally we will want to see the day end on strong buying volume. Weak volume leaves the breakout more prone to failure.
Disclosure: long
The reward:risk on the trade is mediocre at 2:1. This is a second-chance entry based on a trade I published last month. Based on the continued consolidation (more coiled) I have expanded the original profit target upward.
The breakout is occurring today, but ideally we will want to see the day end on strong buying volume. Weak volume leaves the breakout more prone to failure.
Disclosure: long
Cory Mitchell, CMT
Stock and forex trading insights at tradethatswing.com/
Stock and forex trading insights at tradethatswing.com/
