THU 10/15: CNNE – Posts a Buyable Break Out From Our High-Ranked Watch List

10:58 PM – We are currently reporting on this stock as an active holding and continue to monitor the stock closely for any technical SELL SIGNALS.

The focus always remains on price/volume action around key support levels, including the 10 DMA, 50 DMA, and any nearby trendline or ROUND-$ support.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.

THU 10/15: CNNE — Breaks Above $16 With Strong Volume — BUY SIGNAL

10:56 PM – I started a 1/3 position in this Finance-Investment Management company, which was first introduced on our TrendLine BreakOuts Watch List just a couple of days ago.

Today, shares broke out above $16 with volume running 42% above average. That combination of a breakout above resistance and increased volume is what I consider a clear technical BUY SIGNAL.

This also comes alongside today’s bullish action in the broader market, where I’m finally seeing some meaningful volume return and several of the types of stocks we favor making strong moves. These are encouraging developments that I haven’t seen much of recently.

James’ Trader’s Tip: Look for Breakouts Supported by Volume

  • A breakout above a clearly defined resistance level is an important sign of improving technical strength.
  • Above-average volume adds conviction by showing increased demand behind the move.
  • When multiple leading stocks begin breaking out together, it can signal improving conditions for new BUY SIGNALS.

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Chart services courtesy of stockcharts.com. Annotations by James Taulman.