Two Charts Show Basing Patterns
Dunkin' Brands (DNKN) and McKesson (MCK), the pharmaceutical wholesaler and medical information services provider, have formed basing patterns and look poised to move higher. These stocks have not participated fully in the broader market rally off the June lows and may be preparing to play catch-up.
Dunkin' broke below its 50-day moving average in June, taking out its 200-day average in late July, before finding a bottom in August. The stock began moving sideways, and over the last three months it has formed an inverse head-and-shoulders pattern with neckline resistance in the $31.35 area. This resistance level is also a 38% retracement of the July 12 high and the Aug. 12 low....292 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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