The Upside of False Breakouts

Not every false breakout is a waste of time.

Yesterday, I looked at two scenarios where the false breakouts set up a fairly unappealing situation, but it is important to note that isn't always the case. Take Rowan Companies (RDC), for instance. Back on Tuesday this was another name that tried to break over resistance. While this stock was rejected from closing over resistance, it still closed higher on the day. This is sometimes enough to catch my attention. While there is a rejection of the breakout attempt, there were still more aggressive buyers than sellers on the day. Often, this is a signal the stock will at least make one more breakout attempt....208 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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