‘Tis a clean bullish breakout
Traders,
Algonquin Power & Utilities (AQN) made up for its clunky name with a super clean breakout pattern. Let’s explore why it was in our weekend Stock Report.
- The trend is bullish, with price rising above the 9-day EMA and 20/50 SMAs.
- Resistance at $8 has held firm since last November and gave an easy horizontal level to build trades around.
- The past week has seen a high base pattern form beneath resistance, with Friday’s bullish engulfing candle jamming price directly into breakout territory.
- Last November’s earnings disaster left a monster price void or MA pocket overhead. This gives AQN plenty of room to run once it breaks above $8 resistance.
- The tightness of the recent high base also lends itself to a close stop loss, further supporting a quality low-risk/high-reward opportunity.
- Its low share price made the ticker a shoo-in for the Stock Report.
This morning’s rally has the stock triggering by trading above Friday’s high.
Chart of the Day: Algonquin Power & Utilities (AQN)
The past four months of bottoming action is a solid base for AQN’s ascent.
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