When searching for trades, I typically focus on fundamentals first and use the chart as a tool to time the trade and estimate the anticipated move. But from time to time, a technical breakout is so powerful it cannot be ignored, and the fundamentals play a supporting role. #-ad_banner-#Today’s pick is breaking out from a highly reliable chart pattern. This same pattern delivered gains of 27% in just two weeks in Darden Restaurants (NYSE: DRI) and 70% in less than two months in Mattel (NASDAQ: MAT). A breakout from a… Read More
When searching for trades, I typically focus on fundamentals first and use the chart as a tool to time the trade and estimate the anticipated move. But from time to time, a technical breakout is so powerful it cannot be ignored, and the fundamentals play a supporting role. #-ad_banner-#Today’s pick is breaking out from a highly reliable chart pattern. This same pattern delivered gains of 27% in just two weeks in Darden Restaurants (NYSE: DRI) and 70% in less than two months in Mattel (NASDAQ: MAT). A breakout from a wedge formation is one of the most compelling, explosive and successful technical signals I use. The wedge patterns that led to winning trades in MAT and DRI were of the bearish variety. Now we have an opportunity to jump on a breakout from a bullish wedge in DSW Inc. (NYSE: DSW). The pattern emerged on DSW’s chart after the shoe retailer announced better-than-expected Q3 earnings and raised its full-year guidance. Shares gapped up on the opening on Nov. 25, breaking out of a channel and hitting an eight-month high. The stock then made a series of lower highs. Read More