Paul J Singh

BA and AMZN look to be setting up for breakout-pullback plays. Here is a quick summary of what I like to see on the breakout:

1. Price breaks out over established resistance on above average volume
2. Stock closes near the high of the day, printing a long range bar
3. Evidence of accumulation prior to breakout
4. RSI is at a higher level than when at previous high
5. Stochastics printing higher lows previous to breakout

Both stocks fit the breakout critieria. All that is left is a low volume pullback to the breakout point. I’d like to enter Amazon around $44 and Boeing at $92.