Profiting from Supports and Resistances Part 2 (Breakouts)

So here's the second part, I'm pretty sure I alluded to this in one of my previous posts, but here it is again. When a stock busts through its resistance on higher than average volume, the former resistance becomes the new support. Vice versa. This is also known as a breakout.

In my experience it's best to wait for a confirmation, as I've been suckered more than once, thinking it's a real breakout, and it falls flat in my face. Please check my post on profiting from pullbacks. An option would be to fade in to your position, but I'll leave it for another posts.

-The Hawk

Breakout:  http://www.investopedia.com/terms/b/breakout.asp#axzz1Za23weZb