Nutrisystem (NTRI) broke out with a big gap-surge in early May and then consolidated with a triangle. The gap and breakout are largely holding as volatility contracts. Notice how the Bollinger Bands narrowed and volume dried up over the last few weeks. Chartists should watch the June range for the next directional signal. A break above 17.1 on good volume would be bullish, while a move below 15.5 would negate the breakout.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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