UTG
has been in an uptrend since the end of 2011, experiencing a long period of consolidation from August 2015 to October 2017.
During the period of consolidation it would have been best to stand aside until a breakout happened. Consolidations are very
difficult to trade and your capital is best used on stocks that are actually trending.
Patience here would have paid off because we now have a breakout from the most recent deep pullback and price is looking
strong. We need to see price remain above the resistance level and use it as support and opportunities can be looked at if
we get another breakout, as this will confirm a continuation of the bull trend.
Price is currently making new all-time highs so there is not any previous areas of support/resistance in the way of price.
Be alert to a possible breakout soon and keep this stock on the watchlist because it has a history of trending well.
If the trend is as strong as the previous ones then there will be opportunities to compound which can multiply potential profits.
Compounding is a method of extracting more from a trade in less time and with little effort.
Any comments or questions, do not hesitate to leave them below. Hit agree if you share our sentiments!
Sublime Trading