Re: What I learned about sector breakouts
posted on
Nov 15, 2010 07:36PM
You read right Argoz.
When a stock typically breaks out on impressive volume as ECU just did there is a an almost certain probability for some retrace that could potentially return the share price back to the previous resistance (now support), in this case $0.90 level.
Although it may be frustrating watching the share price pull back if you were not as fortunate as BigPic to pull the trigger at the right time, the end result will be an eventual break above $1.30 where most of us expected there to be some difficulting getting through.
In my opinion, we may be approaching the last good buying opportunity, if not there already, for ECU shares since we have broken out of Stage I (basing) and have just entered Stage II (ascension). This pull back may last another day or another month, but it will resolve to the upside and take out $1.30 with it.