Bullish Breakout from Consolidation in Stage 2 Uptrend

Trading Strategy: Bullish Breakout from consolidation in Stage 2 Uptrend. PWR has made two impressive moves in May, and has been consolidating in a controller manner for most of June. Yesterday, the bulls had a clear victory, closing the stock out of the base with a bullish 10/10 bar, leaving a base of support underneath. Although not shown, the weekly chart was also a Buy Setup with a shallow retracement, suggesting higher prices.

chart courtesy of Mastertrader.com

Tip: Breakouts that close outside of the base with a bullish 10/10 bar suggest continued upside.

The Play: Buy stock over previous day's high, with a protective stop under previous day's low.

Objective: A $1.00 to $2.00 move. HIGH RISK

Play Review:

PWR gained a high of $.47 from entry and stopped out at $7.65 for a $.07 gain using trailing stop method (prior bar's low after two full days of trading).