A US stock that was has been repeatedly brought up by our scanning process for a number of years is that of BR and one that we do have positions running on.
The monthly chart above shows how well this stock has performed since the breakout in 2013 at circa $25 from a long-term period of consolidation that spanned back to 2007.
Looking at the monthly chart in detail, we can see several classic features to price action movement when in a trend.
- A trend to $50 following the breakout from $25.
- The expected period of consolidation with $50 as the base and $60, the next round number as resistance that lasted 15 months.
- A breakout from consolidation to the upside inline with the bull trend.
- A retest of the $60 resistance as support following the breakout.
- A trend all the way through to the next major at $100 in 2017 inline with the bull run on the indices.
In the month of May, price made light work of the $100 major resistance and closed a solid $10 above it. It will be interesting to see how price now reacts given how the indices are looking and the fact that often we see retests and potentially even consolidations after price clears key levels of .
Ideally, we want to see price move towards $150, the next major round number above $100. Price confirmed another breakout last week which could be the start of the next bull move up.
is not out until May 10th.
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