A Flat Top Breakout — An Example From DELL

  • October 1, 2004
  • Tsutae Kamada

Some traders try to buy
every breakout. But, I like to buy a breakout when a stock is forming
a flat top at the high.

10:29:00
(From TradingMarkets TradersWire)


Intraday Setup Alert


Dell (DELL)
is trying to take out the intraday high. DELL is up 0.39 at 35.99. 

As you can see, DELL was struggling to take out 36, and it created a flat top at
the day’s high. Of course, some of you thought DELL was making an ascending
triangle.

At 11:00 A.M., the stock broke out on heavy volume, and DELL signaled to exit at
11:35 A.M. when it violated a rising trendline. 

Have a nice afternoon trading session.

T.Kamada

If you have questions, feel free to mail them to me.

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