The Backtest starring Laboratory Corp

There is that breakout you have been looking for. You do cart wheels.

Then it stalls. Uh oh, now what. What you really want to see is continuation but it just stalls. Sometimes, price will do a back-test to the breakout level. Then what?

To help illustrate this particular scenario, I bring you the 60 minute chart of $LH (Fab 5 position):

The Green line denotes the breakout level from Friday. As you can see, the first 60 minute candle of action came down to test this Horizontal Support line – and bounced. This is a successful back-test of the breakout level and what you want to see with healthy market action.

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