Page 1227 - How to Make Money in Stocks Trilogy

Don’t Invest Blindly: Use Charts to See the Best Time to Buy and Sell 209

See How You Did by Checking These Markups

Breakout Price
Stock 1: Deckers Outdoor – 2007 Breakout
60
Weekly Chart
Prior uptrend Flat base 50
46
42
As many stocks do, pulled back 38
after breakout but found support 34
at 10-week line—and right around 30
Cup-with-handle ideal buy point 28
26
24
22
Relative strength line 19
in new high ground 17
© 2013 Investor’s Business Daily, Inc.
Strong volume in right side of base Big volume spike at breakout Volume
3,500,000
1,660,000
860,000
440,000
220,000
Dec 05 Mar 06 Jun 06 Sep 06 Dec 06 Mar 07
Deckers Outdoor increased 151% from September 2006–August 2007.

Stock 2: CME Group – 2005 Price
Breakout 260
Weekly Chart 240
220
190
170
Double bottom 150
140
130
120
110
Low in second leg down 100
undercuts low in first 90
Relative strength line
80
in new high ground
Institutional buying: Big volume in 70
© 2013 Investor’s Business Daily, Inc.
right side of base & at breakout
Volume
1,600,000
800,000
400,000
200,000
Jun 04 Sep 04 Dec 04 Mar 05 Jun 05
CME Group increased 224% from June 2005–December 2007.