Stocks that build big bases generally have a prolonged move when they break out of them. This week CREE is soaring on news of an acquisition that closed today. This stock has all the markings of a new run starting.
SCTR is clearly trying to stay in the top quadrant, above 75. Price broke out above a two-year base, backtested the resistance line and bounced. This now makes the red line support. The PPO is turning up while above zero for the first time in a long time. Looks great!
Today's big push is a little hard to buy into, but any weakness should make a good entry. The $39 level would be suggesting a failed breakout.
Good trading,
Greg Schnell, CMT, MFTA
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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