For those that put an effort into reading stock charts, there are many components to the chart that require review. However, one of the tasks that is often overlooked is the simple step of “looking to the left” – where has price come from.
I came across a Daily chart of ULTI (The Ultimate Software Group) today and it reminded me of this:
Price is testing the prior breakout level, a key level to watch for any new position. If already long, you want it to hold this level.