MGM Resorts International

A good example of just such a clean, confirmed break comes from MGM Resorts International ( MGM), a stock that made our list of Must-See Charts last week. At the time, solid earnings data had just propelled MGM above its resistance level at $14, and I recommended waiting for confirmation that day that MGM was able to hold above $14 and then considering a protective stop just below that resistance level.

Sure enough, shares opened right above that resistance level the next day, giving traders an opportunity to make more than 7% on the trade in the days since (it traded as high as $15.15 yesterday). MGM is a good example of why conditional triggers are so essential for traders -- by waiting for evidence that MGM could hold $14, we made sure that excess supply of shares at that price had been absorbed by the market, and acted on a high-probability trade.

To see this week's trades in action, check out the High Volume Technicals portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on MSNBC.com.

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