A Potential Breakout in the Works

There are so many stocks that may or may not be in the process of forming tops, or entering consolidation patterns after extended moves higher, that it is good to find one that is preparing to move out of a well-established basing formation.

Interface (IFSIA) manufactures and sells flooring products worldwide. The stock has been consolidating in a wide-range rising wedge pattern (or inverse head and shoulders) since August 2011. Wedge or H&S, the most important technical level is the point that identifies a breakout, and this would be the $14.00 neckline or wedge resistance level. MacD and stochastics have been in bullish divergence to price since the beginning of the year, and volume and money flow have also been improving over that period....199 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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