ABM Breakout Continued...

As it turns out, ABM did confirm the "nearly perfect breakout" from Monday. Any time a stock hits a new 52 week high on good volume I give it one additional day to confirm. I actually purchased this stock on Tuesday morning. I like to keep it simple and give my self plenty of room to retrace. I bought in at $25.38 and I placed my sell stop at $23.75

What is the next step? In most cases I am looking to own the stock for as long as the trend holds up. I am not using a trailing stop loss. I always adjust my stop loss orders after market close. I don’t anticipate an adjustment of my stop in this case for a few days or even weeks. When the stock bounces off of a new level of support I will raise my stop loss. Until then I will keep my initial stop in place.