Tracking a Trio of Breakout Candidates
Stocks that form clearly defined reversal patterns after extended periods of price consolidation provide quality trading opportunities. I have three potential candidates that have formed inverse head-and-shoulders patterns over the last several months and are positioned to break out.
Arrow Electronics (ARW) spent the last four months forming the basing pattern below neckline resistance in the $38.00 area. This level has significance going back to the last quarter of 2011, when it acted as resistance in a rising triangle pattern. The subsequent breakout from that pattern took the stock price to the projected target price and marked the 2012 high. A successful break above the neckline of the inverse head-and-shoulders pattern projects a price target that would take out this previous high. The technical indicators reflect positive price momentum since the low of the formation in October and improving money flow in this last consolidation phase of the pattern....262 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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