Another day, another flat base breakout! You’ll see me feature these kinds of breakouts here quite a bit because in my opinion they are one of the best formations around – clearly defined support and resistance levels with a high success rate. I featured flat base breakouts in MPWR and ENR in the past 2 days and today I highlight a breakout in Banco Itau (ITU). Foreign banks have been moving of late and ITU is no exception. Today, it breaks of a well formed flat base to a new all time high. I do no own this stock currently but may consider a position on a bit of a pull back. While at the top of a buyable range, I prefer to get into position very close to the breakout point. Why not wait for perfect entries when there are so many great trade candidates?
Filed under Stock Trade of the Day by Tate Dwinnell
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