2/01/2016

PLCE is setting up for breakout



Market monitor suggests time to be aggressive. This might be the start of a new bull move or at least few weeks of tradable rally. Time to start looking for anticipation setups ready to breakout.

What makes a good anticipation setup?

  • series of narrow range days in pullback/consolidation
  • orderly pullback with no 4% plus  breakdown during the pullback or consolidation
  • low volume pullback
  • low volatility during pullback
  • linear first leg if looking as continuation setup
  • Stock should go up smoothly and not in volatile manner
  • 3 to 10 days consolidation/pullback
  • not up 3 days in a row

PLCE is an example of such setup currently. It is setting up for possible breakout from this level.

Other stocks setting up for possible breakout are : ANFI ALRM PLAB

To find good anticipation setups you need to develop a daily process flow and scan for them.

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