Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

exclamation points

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As you scan through charts of fundamentally sound stocks, be sure to note the ones that jump in high volume.  I call these indicators “exclamation points.”

Below is an example, Panera Bread Company from Oct. 2009.  The stock carved a cup with a handle pattern from mid-Sept through the handle beginning at point A.   A proper buy point is ten cents above the high price at the start of the handle, at A.

At point B, PNRA announced earnings, beginning a four month, $12 per share move.

Also note that PNRA clung to the 50 day moving average (green line) through the base forming in October (point C.) That’s a good sign of institutional support of a stock as it carves a pattern.

PNRA Panera Bread making an exclamation point in Oct '09

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Written by heyercapital

February 12, 2010 at 10:51 am

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