This one made a sneaky move. It squatted right after I bought it. The next day it made a scary move breaking the channel resistance. It turned out to be a channel shakeout as it closed right back at the channel resistance, on increasing volume. I imagine some tight stops got taken out there, only to recover into the close. Today extended that move squarely into the center of the channel and back above the pivot and back above the 20-day MA. It would be nice to see the volume increase as the price continues up the channel.
I liked that reversal, and that I wasn’t fazed by it. I’m not too wild about the RS though. It’s super strong relative to the IT sector, but the sector slightly underperforms the SPX. Other than that, I’m liking this trade so far.
