How To Find The Best Stocks To Buy Before They Breakout ! Stock breakouts are about more than simply buying stocks that are trading at new highs. In order for a breakout to be valid and without a high risk of failure, a stock must first possess a valid base of consolidation on its chart pattern.
A “base” is crucial to an uptrend, as the stock or ETF builds a strong foundation to launch the next advance. Before a stock can launch a big price run up, it must first have a solid base pattern to build upon.
It’s sort of like the foundation for a house; if it’s not solid, the levels above can become unstable. For stocks, base patterns serve as that foundation. They occur when a stock’s price falls, then consolidates over a series of weeks or months. This leads to what is known as a “buy setup.”
Source :
https://www.morpheustrading.com/blog/best-stock-breakouts/
Applying this to RRS, it is clear that the stock is in the final stages of finishing the building of a VERY STRONG BASE, more than 6months of strong support (8c) and HUGE SUSTAINED ACCUMULATION and CONSOLIDATION.
IMO given the strong build up of the new base, i believe the RUN UP and BREAKOUT will be FAST and FURIOUS ! Prepare yourself and fasten your seatbelts, the missile is ready for launch !
happy silica investing to all, exciting times ahead of us !