Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. Dried-up volume, indicating all the selling has been exhausted 5. Huge volume on the breakout 6. Strong fundamental basis with triple digit percentage earnings
Flaws: 1. The market is still in a hard-penny environment with only 31% of total stocks above the 200-day MA 2. The index is moving higher but there are still less stocks setting up.
I like to see some follow through action in the upcoming days