A classic breakout in NET (Cloudfare)

Written By Venu .

October 11, 2024: After a multi-weekly consolidation, NET finally broke out of a volatility contraction pattern (VCP). Any pullback towards the 87$ might be a good buying opportunity. Many small and midcap stocks that have been dormant for several months, like NET are waking up, which is a good sign for higher profitable trading probability.

Stop loss: Weekly close below the 10-week moving average.

Weekly chart showing a classic VCP breakout. 

Venu .
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