We’ve talked about it many times before.
What do momentum break-out traders love most?
They love a stock that’s shown strong momentum but has temporarily stalled and gone sideways in a tight channel.
The previous momentum means the stock is strong.
The tight channel means it’s gathering up energy.
A breakout to the upside after this sort of action can be very powerful.
And we see this right now in Lennar (LEN).
Here’s the chart:
A break above $156.01 could lead to a big move.
We’ll keep an eye on it.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
