Today’s trade of the day features one of my favorite chart patterns – the bullish triangle formation which is characterized by a few days of near record volume buying followed by tight consolidation where price gets squeezed to a point with diminishing volume. The result is often a breakout in the direction of the previous trend which in this case is up, up, up. Basin Water (BWTR) is breaking from this very bullish formation today with decent volume.
More on this topic
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A Figment of the Bulls' Imagination
(Financial Armageddon, 3/5/10)
BULLISH SENTIMENT PICKS UP
(THE PRAGMATIC CAPITALIST, 3/5/10)
TECHNICAL PERSPECTIVE: IS THIS A BULL TRAP?
(THE PRAGMATIC CAPITALIST, 2/20/10)
Emini SP: Bullish Monday?
(Short-Term Trading, 2/22/10)
Filed under Stock Trade of the Day by Tate Dwinnell
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