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  • Jay

A Textbook breakout

Here's an interesting setup:

Quinstreet ($QNST) broke-out of its resistance area (orange rectangle) on high volume (3x the 50-day average - blue arrow). The price pulled back to its breakout level, confirming that the old resistance becomes the new support, on low volume (less than the 50-day average - red arrow), with momentum straying in a bullish range.

Now, the price needs to bounce off this area and start a new uptrend to be a complete textbook breakout.

If QNST is able to rise in price and pass those previous highs ($16.42) to make higher highs, one could start looking at the next level of resistance/target price of $18.22 (Fibonacci) and $20.55 (ascending triangle measured move).

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