2. Next, let's look at another movie company, Lions Gate, known for movies like The Hurt Locker, Monster's Ball and Crash.
Lions Gate traded positive on Tuesday, closing up 4.56% to $27.52 per share.
- Tuesday's range: $26.32 - $27.61
- 52-week range: $24.54 - $37.81
- Tuesday's volume: 2,106,222
- 3-month average volume: 2,418,870
Lion Gate is also a rounded bottom breakout, and looks good from a technical standpoint. The chart has been trading sideways for the last two months, not really going anywhere. Yesterday, shares closed right at the top of the sideways trading channel, so I'd like to see followthrough to confirm this trade. Any positive trading above the current level is considered a breakout above the two-month trend channel.
The next overhead resistance levels are $28.29, $29.56, $30.50, and again at the 200, which is at $31.56. I would target the 200 at $31.53, which would be 14% from yesterday's close. Set a stop below the 50 at $27.12. Stay long until you see a sell signal, or a close below the t-line.
Don't be afraid to take profits at 1%, 2% or 5%, since we are trading for profits, and it is still better than returns from a bank account, or stuffing your money under your pillow. Set your stops and don't worry about getting stopped out, as that's what stops are for.
Profits come first, above all else, that's why we do it.
Have a great day, and good luck in this crazy choppy market!
Follow me @aarongallaher
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At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.