On one hand, stocks trading in sideways ranges can be disheartening.
Is it ever going to break out?
Is it ever going to move?
Is it dead forever?
But, on the other hand, famous stock traders love it when stocks are trading in ranges.
Because they know a massive breakout might be coming soon.
Here’s an example.
Back a few years ago, MPWR was in one of those sideways channels.
It had been a huge mover, but in 2019, it went into a coma.
What happened next?
It exploded from $168 to $570 as soon as it broke through the top of the channel:
Now MPWR is in another sideways channel.
And it’s above its long-term moving average.
And its sector is one of the top 20 in the world.
Could a break above the channel around $552 mean another big run?
We’ll keep an eye on it.
Happy trading,
Scott
