The price action somewhat resembles Strategy 1 — either a reversal after a downward move or a breakout following a period of sideways consolidation.
Positives
- Price is above the 10, 20, 50, and 200 moving averages
- It broke through a resistance zone.
- MACD is in positive zone
Negatives
- The stock price has broken out, but there has been no corresponding increase in trading volume.
- There is another resistance zone overhead.
- The stock has already risen for four consecutive days.
Trade Plan
- Stop loss: Intraday low
- Target: $1,111.83
