A Flat Top Breakout
Probably buying on a
breakout is one of the most popular trading methods. Traders like to
open a long position when a stock moves above a resistance level. A flat top
breakout is also a well known strategy used by many traders.
09:51:24
(From TradersWire)
Burlington N Santa Fe (BNI)
is trying to move out of a trading range. BNI is trading at 40.05, up 0.03. Long
above 40.15. Target around 40.80. Stop 39.80.
As you can see below, BNI has been consolidating just above its rising 20-day MA
and forming a flat top. Naturally, we are looking for a breakout above this
range.
The stock took out 40.15 shortly before 10:00 AM, and it reached our initial
goal around 10:50 AM. As we have mentioned in TradersWire, be sure to take
profits on half of your position and raise your stop.
Have a nice afternoon session.
If you have questions, feel free to mail them to me.