Keywords Studios LSE:KWS was recently in a long period of consolidation where we saw price going sideways. During times like these, we do not want to enter trades and we must wait until we have a clear trend direction.
Now price has broken out of the consolidation zone resistance. Taking the first breakout is not the best option to take because it can easily turn into a fake breakout. The safer option would be to wait for a retest of the resistance turned support and take an entry based on the next breakout. This option puts the probability in our favour because it helps to confirm that the buyers are in control.
We just have to sit and patiently wait for the next breakout, if it happens, the we can look at taking a long trade.
Any comments or questions, do not hesitate to leave them below.