Here is another pick on a high-volume breakout. The stock gets a 99 IBD rating so we know the company is quality.
My concern here is all about the volume. This stock has followed the major indexes very closely and just like them, the overall volume has dropped while the price continues to move higher.
Optimally, we would like to see a follow-through day on increased volume to verify the demand for the stock. Based on the trend, I wouldn’t be surprised to see a pullback in the near future though. Put it in the watchlist and see if we get strong action in the next couple of days.
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