I always find it hard to take on new positions following a rally – mainly because you never really know if the move was part of a sustained upward push or if it was just a one time bounce. That being said, when there is a rally I always like to look for candidates of the rule of 3.
The rule of 3 basically states that breakout stocks will move in 3 consecutive big blocks. Whether it is real technical strategy or not, I have no idea, but I have seen it work all to many times to pass up.
See the rule of 3 in action here.
Lincoln Educational (LINC) is a possible stock that I feel could see a couple more big block higher here. See chart below
Check the trend analysis for Lincoln Educational.
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