They rallied to their February high, then began to trade in a narrow horizontal channel forming a classic flag pattern.
Flag resistance was penetrated, and the move that followed was a perfect pattern projection to the April high. At that point, the stock price began trading in a second sideways consolidation, forming another flag pattern, and now this flag resistance is being broken.
On the daily chart, the channel consolidations are more clearly defined and accompanied by tight Bollinger Band width contraction, which is often followed by volatility.
It remains to be seen if this latest breakout can achieve its pattern projection, but both the relative strength index and the money flow index are tracking above their center lines, reflecting price and money flow momentum.
This article was originally published on June 24 at 7:53 a.m. EDT on Real Money Pro.