WELCOME TO THE BEGINNING OF THE 2ND STAGE OF THE RUNWelcome to the beginning of the 2nd Stage of the run! This is almost a PERFECT chart setup, What is really nice here is we have the conergence of TWO events. FIrst, you have a breach above the 200 day moving average. Second, you have the chart breaking through (or as is the case so far today) the consolidation phase, which I still put at about $34.30ish.
Is one of these events more important than the other? Personally, I consider the 200 day EMA to be more significant, as it is an important benchmark for the stock, and something that a lot of the true investor crowd pays attention to. The reference to the break of consoloidation is also important, but speaks more to the trading crowd and shorter term investors (swing).
The key here, and what is truly perfect, is that these two events converge. What you get from that is motivated buying coming from completely different channels, overapping each other and adding real fuel to the move up. Now, if this continues to play "picture perfect", there is typically a slight retracement back to the 200 day EMA. Sometimes this happens quite quickly, even on the intraday basis. Personally, I think this will be very short lived, and the stock will then begin the true 2nd stage of the run...the stage that doesn't look back.
In any case, I'm thrilled with ALL aspects of Bombardier and the strength it is showing from a technical standpoing and in the trading. To use a baseball analogy, we are just beginning the 3rd inning. There is a LOT of room for this stock to run, and there will be many people here who are going to make a LOT of money off this stock.