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.
