Finding The Appropriate Breakout
Everyone knows about the power
of daily breakouts when they occur during a healthy market. It’s
also a fact of life that when a stock is setting up in a technically sound
basing pattern and has the fundamentals to boot, that there’s most likely going
to be competition to jump on that ‘animal’ before it starts up and running.
10:22:11
Intraday Setup Alert
Zebra Technologies (ZBRA)
has formed an ascending
triangle on the 30-minute extended chart. The issue is near 52-week highs
and weekly pattern breakouts thru 56.08. ZBRA is up .34 at 55.46.
The daily pattern and fundamentals actually
qualified this particular lil’ animal for my
Intermediate Report, which most of our subscribers already knew since I had
been following this one with them in our TM chat during recent days.
With ‘the goods’ to sprint, and the market winds
at its back (but also precariously stretched), the question that one might pose
is not if the breakout will work, but rather, trying to figure an appropriate
level to enter. With today’s gap higher in the broader market I feel this is
particularly important. Even a small ’bout’ of profit-taking near levels that
are ‘easy targets’, such as with Zebra’s weekly breakout, might turn this ‘sure
thing’ breakout into something that ‘bites’, if the trader isn’t super careful.
With that in mind, I’ll look for lower areas of consolidation that provide
intraday breakout opportunities, and then if we really do get off and running,
we’ll have earned a whole lot more than just our stripes!!!