An Ideal Long

By -

Let me show you a chart that I own and that I really, really like. I've mentioned it before; it's Rackspace.

0928-rax

Why do I like this chart? Let me count the ways:

(1) The pattern is nice and big; the saucer spans nearly a year wide;

(2) The pattern is extremely well-defined. This has "saucer breakout" written all over it;

(3) The volume has generally been increasing, and on the breakout, the volume exploded higher.

As much of a permabear reputation as I have, I like to highlight the longs that I genuinely respect and appreciate.