BREAKOUTS
Heed a false breakout reversal, especially when preceded by a triple bearish divergence. The stock will usually drop for at least three days or to support. Value will erode quickly if you hold.
When waiting (hoping) for a breakout, stocks need to “put up or shut up.” If they don't run in a reasonable time, they will fail. Patience is good but should be realistically tempered in these situations.
If a squeeze begins by a price gap above resistance but doesn't catch fire, prices will sag to fill the gap after a while.
It's one thing when stocks gap and run; it's another when they gap and “walk.” Invariably, in those situations, it's not a matter of if but when the gap fills.
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