Pinpointing a perfect breakout is thrilling.
It makes a trader feel like a genius.
And it’s also very profitable, of course.
But it’s not mandatory.
Sometimes we can get really big winners on stocks that have already broken out.
Take Monster Beverage (MNST), for example.
Clearly, it’s already broken out:
A “perfect” breakout entry would have occurred back in November 2022:
But another great time to catch a winner with great momentum is when it takes a break.
When a stock pulls back toward the 30 week simple moving average, many times that means it’s gathering up steam for another move upward.
And that’s exactly where MNST is right now.
A break above $60.47 could lead to another explosion.
We’ll keep an eye on it.
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The charts above use 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.