To review Brookdale’s stock, please take a look at the 18-month chart of BKD (Brookdale Senior Living, Inc.) below with my added notations:
It’s easy to see why traders could think BKD was never going anywhere since the stock just went sideways all year in 2013. However, over that period of time the stock had also created a strong level of resistance at $30 (blue), which constituted a 52-week high resistance. A break through that level would most likely mean higher prices for the stock. As you can see from the chart, BKD finally broke higher this past Friday on massive volume.
The Tale of the Tape: BKD broke out to a new 52-week high. A long trade could be made near $30 with a stop placed below that level. A break back below $30 would negate the forecast for a continued move higher.
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