Basing in the Box

One of the common patterns to look for in a stock setup is the forming of a “base” – a time period where the stock price stays within a relatively tight range for weeks up to several months.

One of the stocks that caught my attention this evening was EL (Estee Lauder). Below is a Daily chart showing a nice base built “in the box” as well as a really nice Bollinger Band “squeeze”:

Price is approaching the 59.49 R from December, then on to test the R from November of 60.37 level. Price is currently just above the upper Bollinger Band so look for it to expand up to make room for Price.

Nice Breakout setup here so set your Price Alerts and stalk it.

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