Trouble At A Stock's Breakout Could Be Sell Signal
Posted on March 04, 2013 at 17:34 PM EST
The early stages of a stock's breakout can be a tense time. A stock that reverses lower or gives up most of its gains after clearing a buy point is flashing a warning signal. The same is true for a stock that breaks out but ends the day with below-average volume. These flaws usually signal that big funds with the firepower to drive a stock higher aren't participating in the breakout. In such cases, investors should consider selling well before the