In a recent blog post on All Star Charts, we discussed the importance of big bases. In a nutshell, we like big bases because it reveals levels of “price memory” and indicates institutional support. You can read the post here.
At times of market uncertainty, indecision, or stress, it can be constructive to focus our attention to stocks in the process of building bases or just emerging from them. Today’s market environment certainly qualifies as uncertain if not also indecisive. As such, we’re digging into stocks that have recently broken out from significant bases.