Overstock.com: In The Breakout Zone $OSTK

One of the more irksome aspects of the markets is when a stock or market is near to breaking out, everyone is waiting for a level to be cleared, and then there is a dance around resistance for an extended period. We are not quite yet in this kind of game playing yet, but shares of Overstock.com have poked just above the psychological $20 level a couple of times in the recent past.

ostk

Looking at the daily chart and it can be seen how there has already been a clearance of the all important 200 day moving average at $16.69, so that really the bulls are allegedly relatively safe while this holds. However, a weekly close today should really be enough to begin an acceleration to the upside, with the best case scenario a possible move as high as the top of a broadening December triangle formation currently pointing to a target at $34 on a three months timeframe perspective.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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