Chart Signaling Breakout Ahead That Could Make Traders 20% to 40%: CIE

Today, I would like to take a look at a typical trade setup that the average retail investor tends to shy away from but the professional trader salivates over. The company is called Cobalt International Energy (NYSE: CIE) and is focused on oil exploration and production.

At the moment, the stock appears to be in a healthy correction cycle; however, it is at a critical juncture -- the range between $20.50 and $21.50. If the stock drops below $20.50, this should stop out longs and, depending on velocity, turn this into a great short trade. On the other hand, a break above $24.70 would set up a great long trade.

 Additionally, with a beta of 2 versus the S&P 500, should the stock break in the direction of the S&P 500, it could get an extra boost and really reward those on the right side of the market.

Now let's dig a little deeper into the charts.  (more)