Don't Ignore This Chart

This Chart is Lighting Up

Greg Schnell | 

Stocks that build big bases generally have a prolonged move when they break out of them. This week CREE is soaring on news of an acquisition that closed today. This stock has all the markings of a new run starting.

SCTR is clearly trying to stay in the top quadrant, above 75. Price broke out above a two-year base, backtested the resistance line and bounced. This now makes the red line support. The PPO is turning up while above zero for the first time in a long time. Looks great!

Today's big push is a little hard to buy into, but any weakness should make a good entry. The $39 level would be suggesting a failed breakout.

Good trading,
Greg Schnell, CMT, MFTA

Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is also the author of Stock Charts for Dummies (Wiley, 2018).
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