Joined Nov 11, 2007
1,458 Blog Posts

The Daily Breakout: ECL

This chart was chosen as a study in support and resistance, trend lines, and pivot points.

The patient trader could have bought the breakout from the flat base, and then added shares on the successful retest of the pivot area. Also, the failed breakdown, evidenced by the price getting above the downtrend line, would have been an excellent entry point.

It makes sense in this environment to take a small position as a candidate breaks out, and then wait for a retest before committing more capital. The key, as this chart shows, is patience and discipline.

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