5 Breakout Trades to Profit From the 'January Effect'
The buy signal comes on a breakout above the stock's neckline, which comes in at $62. Some traders are anxious about trading a popular pattern like the inverse head and shoulders -- but they shouldn't be.
A recent academic study conducted by the Federal Reserve Board of New York found that the results of 10,000 computer-simulated head-and-shoulders trades resulted in "profits [that] would have been both statistically and economically significant."
That's a good reason to pay attention to CLH this month.
To see this week's trades in action, check out this week's Must-See Charts portfolio on Stockpickr.
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