A very similar setup is shaping up in shares of Roper Industries (ROP) right now. For this stock, the resistance level to watch is $103, and support comes in at $95. Like SWKS, the key to trading this setup is to wait for a break outside of the channel, and then take a position in the direction of that breakout.
If you cut your teeth as a value investor, it may seem unintuitive to buy when the stock's price is higher and sell when the valuation gets cheaper. But there's a very good reason for trading ROP like that; to understand it, you've got to think about what's going on with buyers and sellers.
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