One Way To Detect The Direction Of A Breakout

  • September 29, 2004
  • Tsutae Kamada

When a stock is forming a trading
range, you want to pay attention to the overall trend of the stock to find out
the likely direction of a breakout.

10:11:12
(From TradingMarkets TradersWire)

 Daily
Setup Alert


Best Buy (BBY) is touching the top of a trading range. BBY is up 0.46 at
53.97.

BBY has been consolidating at the month’s high, and as you can see, the stock is
in an uptrend. Needless to say, you are going to buy the stock as soon as it
breaks out above the trading range. Your stop loss may be set slightly below the
upper boundary of the range.

At 10:30, BBY successfully broke out.

Have a nice afternoon trading session.

T.Kamada

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

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