Not all breakouts are earth shattering, life changing events. Some happen so quietly that you could easily miss them.
This is what I call “The Sneakout”.
I call it “The Sneakout” because it reminds me of a cat burglar sneaking out of a house with a sack full of loot. Before you know that anything has happened he’s far, far away selling your stuff on the black market.
Take a look at this PERFECT trend in $SBGL.
Amazing. $SBGL, like a lot of other gold stocks, has been on a tear lately and this awesome chart shows that perfectly. But take a look back to the beginning of the trend. It’s one of the first things I noticed about this chart.
The entry pattern. A nice little “W” bottom and “The Sneakout”. Here, let me zoom in to show you —
See that? The breakout happens on a narrow range candle, up only 1.35% on the day — with almost NO VOLUME. The only hint you get that there is some volume there is the two huge green volume spikes in mid-December.
But that’s about it. There is nothing on this chart that screams that this stock is going to run up +84% in the next couple months.
That’s why I look at every single chart in the universe of stocks I trade, every weekend.
There are about 350 charts to rummage through and The Sneakout is one of those great setups that I’m always on the look-out for.
Until next time…