IT’s Breaking Out!

by | Jan 16, 2024

Last week, we mentioned that breakout traders love tight consolidation.

They love stocks that have been going up (have high relative strength) and then go sideways in a narrow channel.

And if the group a stock is in is doing fairly well, even better.

Right now, we’re seeing all of that in Gartner (IT).

Here’s the chart:

IT is above the 30-week moving average, and it’s nearing a new high. Plus its group is in the top 60 (as far as recent strength).

Bullish earnings and a breakout above $469.58 could lead to a big move.

We’ll keep it on our radar.

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.

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