Software stocks have been starting to make a comeback recently after a big pullback over the past couple months. One stock that caught my attention last week was PLAN which completed a Stage 2 continuation breakout last week after earnings on huge volume. PLAN traded its highest weekly volume ever as it broke through downtrend resistance. The initial Stage 2 breakout in PLAN occurred back in June where it broke through horizontal resistance on huge volume.
Luckin Coffee followed up its Stage 2 breakout last week with even more institutional accumulation trading almost 80 million shares for the week. The stock moved to a new high last week and has no overhead resistance. LK has one of the biggest back to back weeks of high volume I’ve seen this year in 2019, and big volume is one of the attributes of a quality Stage 2 breakout.
Disclosure: I am long PLAN and LK.
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