Breakout Pivot and Price Extension in Base Patterns

Two traders watch the same base. The top of the range sits at 100.00 and the nearest chart-failure level is a support area at 96.00. One gets a fill at…

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Historical Chart Study: How to Learn From Past Breakouts

Two growth stocks finish their bases in the same quarter. Each one ran more than 100% in the months before, built a tidy six- or seven-week consolidation about 10% deep,…

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Pocket Pivot: How to Read Demand Before the Breakout

A growth stock has spent seven weeks moving sideways between 46.80 and 52.10. The 50-day moving average sits at 48.90 and is still rising. On a quiet Tuesday the stock…

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Read more about the article TLRY +192%: a merger-spike base breakout that turned into a squeeze, January 2021
TLRY on the 2021-01-04 breakout entry, from my chart archive

TLRY +192%: a merger-spike base breakout that turned into a squeeze, January 2021

On 4 January 2021 Tilray closed at 90.00, 10.10 points under the 100.10 spike high its merger announcement had printed three weeks earlier. Two days later the Georgia runoffs handed…

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High Tight Flag Pattern: The Run, the Pause, the Pivot

A growth stock climbs from 18.40 to 39.10 in seven weeks, a gain of 112.5%. Most charts that go vertical like that give a large part of the move back.…

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Read more about the article POLA +446%: a base breakout that needed a second try, November 2020
POLA on the 2020-11-13 breakout entry, from my chart archive

POLA +446%: a base breakout that needed a second try, November 2020

Polar Power is back on traders' screens this week, and per the company's 29 September release it has a new trial order for 50 propane-fueled DC generators from a Southeast…

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Sales Acceleration: Reading the Revenue Sequence in CAN SLIM

Two growth companies report on the same evening. The first posts revenue up 38% from the year-ago quarter, and the headline reads well. The second posts revenue up 33%, which…

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IPO Base: Reading the First Consolidation in a New Stock

A company lists with an offer price of $22.00, opens at 31.50, trades as high as 38.20 in its first session and closes at 34.10. Six weeks later it's trading…

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New Product Catalyst: Judging the Story Behind a Leader

A mid-sized company issues a press release before the open. It describes a new product as "transformational" and "category-defining," names a large partner, and quotes a market-size estimate in the…

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Earnings Gap: Reading a Stock’s Reaction to Results

A growth company reports quarterly earnings per share up 41% on sales up 28%, both ahead of the published estimates. The stock opens 12.2% higher the next morning. By the…

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