After breaking out from a handle on powerful volume surge (shown by green arrowns) in late April, CSTR has just continued to rise in the wake of better than expected earnings report on sustained high volume and has gone through the recent correction unscath as it close last Friday within 8.5% of its 5-year high!
The correction has done one thing to CSTR. The last leg down in the correction has left what appears to be a short stroke pattern on CSTR. We can see that the week before last was a big move up on powerful volume. Then the most previous week was a short down week on lower volume compared to the week before and its high and low are within the week before's high and low with the high being just off the week before's high.
I believe IBD buy rules are the same for the short stroke. Buy on a break of the pivot point ($58.03) with a 7 - 8% stop loss. I am already long 50 shares of CSTR since Friday's reversal day anticipating a break out.
So this is an idea for CANSLIM traders or even swing traders to add to their watchlists for next week.
Good luck and good trading!
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