Pullback…Then Explode!
Narrow range pullbacks can often provide good trades, even though they may
not have much room to move before meeting resistance at the previous pivot high.
The snap back from the contracting volatility toward the direction of the trend can often be violent enough to
catapult it through any resistance it may encounter.
4-15-2002
13:58:53
Anthem (ATH)
is forming a narrow range pullback from its recent high. ATH is currently up
0.38 to 61.02 and is carrying a
3-month relative strength rank of 85 from TradingMarkets.com.
Yesterday the move begins as the stock’s volatility comes more into line.
15:11:49
Anthem (ATH)
is trading higher today, breaking out of an ascending triangle to make an
all-time high. Volume is strong. ATH has an up trending
ADX of 32. Anthem is trading higher at 64.50 up 2.29.
Today the move is continuing higher, as the stock gaps higher
and runs before pulling back.
Resistance at the prior swing high is something to be aware of,
but not afraid of. Every strong stock moves through resistance at several points
on the way up.
Until tomorrow,
Duke