On 10/6/16, BECN appeared on our Consolidation Breakout Long scanner. The stock had an extended selloff, a bounce off the low, followed by a 9 day consolidation as shown in the daily chart above. Think of the bounce off the low as Elliot Wave 1, the consolidation as Elliott Wave 2, and the breakout as the start of Elliott Wave 3.
The trade entry on 10/6/16 was a penny over the consolidation high at $42.99 as seen on the 5 minute chart above. BECN traded to a high of $44.70 making it a nice day trading and swing trading opportunity.
Our Consolidation Breakout Scanners are just two of our profitable scanners. This scanner doesn’t just look at the past two days of trading. It also looks at the past 30 days of trading for very specific patterns. If you would like to be alerted to trades like these, we offer a 7 day free trial.