Citrix Breaks Out
Breakouts from trading ranges can be profitable,
but not always reliable. Fortunately, you’ve got more than just price action to hang your hat on. Volume often gives you clear, telltale signs of underlying strength that can make the difference between a failed breakout and one that flies into the stratosphere. Citrix Systems demonstrates a breakout of a six-month
high (top red line) on excellent volume. Where I see even more encouragement is in previous price and volume surges that occurred together both Wednesday and 10 days ago.
Citrix showed a false breakout in mid-November,
then tested the range bottom before rallying to the current highs. Traders will
look for a higher open to go long; a pullback might suggest a later test. Continued strength in techs will certainly help to keep this breakout alive. Citrix had traded as high as 122 5/16 last March before falling victim to the Nasdaq swoon. Citrix finished the day up 2 13/16 to 32 5/8 on more than triple the average volume.
See you Friday,
Eddie