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Recently I have notice there is a lot of stocks breaking out with a handle that is only 5 – 7 days long. Should we consider them as a good breakout?

April 26, 2017breaking days Notice stocks

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Recently I have notice there is a lot of stocks breaking out with a handle that is only 5 – 7 days long. Should we consider them as a good breakout?

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A. We are presently approaching the end of a very distressful Bear market that has lasted nearly two years. The purpose of the handle is to “shakeout the weak and timid” investors that remain in the stock. At this time there are no weak and timid investors left in the market anywhere. Therefore there is little resistance when the handle begins to form so it moves up quickly on some stocks.