Paper maker Kimberly Clark (KMB - Get Report) is another stock that broke out in Wednesday's wildly bullish session. Shares of the firm had seen a reasonably strong showing in 2012, climbing around 10% even while the broad market was struggling to hold its ground. For the last month and change, shares had been consolidating in a rectangle pattern, a formation that's common after a large price move.
The rectangle gave KMB investors a chance to absorb the big rally in April before deciding what to do with their positions.The breakout in KMB above the rectangle's resistance level at $79 is a buy signal for shares of this stock, even though shares have climbed a bit above that price at this point. KMB shareholders should look to $77 as a critical stop loss level -- after all, it's a price level where there's historically been a glut of demand for shares of KMB. If this stock suddenly can't catch a bid at $77, it's time to exit longs.
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