Cycle Trading: Stocks breakout
|Stocks breakout to close at a new all time high on Monday.
Stocks did have a false breakout in early September. Last Monday stocks printed bearish reversal which looked as if stocks once again formed a false breakout.
However, stocks printed a bullish reversal on Tuesday at the neckline support. Stocks backtested the neckline support on Thursday then formed a swing low on Friday. Stocks closed above the upper megaphone trend line on Monday. Long positions can be entered here using the September high as the stop. And a close above the day 6 high of 3645.99 would mean that a bubble scenario is back on the table.
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