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Breakout with price targets

Breakout with price targets

Western Digital Services is showing great strength since it broke out of its long rectangle channel. WDC entered into a rectangle after a sharp decline from $110 t0 $34.99. Stock is currently trading at 61.81.

Rectangle Channel- When a stock keeps moving between a certain price range, unable to breakout on either side, it is said to be moving in a channel. However, channel has defined support and resistance lines, that are confirmed by repeated penetration effort by the stock price. Support and resistance lines are nothing but carefully drawn trend lines on the chart.