A Quiet Breakout Is Setting Up… Most Investors Will Miss ItMost investors only recognize these quiet setups after the move is gone. In this breakdown, you’ll see how to spot the congestion, read the insider signals, and position yourself before the breakout.
Two weeks ago I released what may be the most important stock briefing I have published this entire year. In that briefing, I showed you: • A cash rich technology company that most investors overlook If you missed it, you can read it here: Since I published that report, the broad market has churned sideways. Volatility has slipped into the floorboards. And this stock has quietly begun to carve out a textbook congestion structure, complete with clean upper and lower boundaries. That is exactly what we want. Because if you understand the market’s internal language, you know that congestion does not mean weakness. Congestion is coiled energy. Congestion is tightening behavior. Congestion is the market’s way of saying, “Something big is coming.” And right now, all the clues point to a breakout that could happen faster than most investors will be ready for. Before we get into the chart, let me be clear: This is one of those setups where waiting for the official “congestion exit” may cause you to miss the heart of the move. Why? Because when insiders buy at this scale, the catalyst that causes the breakout is often so powerful that the move is already halfway complete before the entry signal happens. The Market Has Now Completed Four Of The Six PhasesIf you read my essay There Are Only 6 Ways A Market Can Move, then you already understand the structure that is unfolding. If you have not read that you can check it out here now. (link to your 6 Ways article You will see this in the screenshots below. I have drawn the isolated highs and lows that define the congestion zone, just as I teach in the 6 Ways framework.
The upper boundary reflects the previous isolated high. The lower boundary reflects the isolated low formed within the allowable number of bars. The interior has tightened into a well defined coil. This is classic congestion behavior, and the range is now mature. Why does this matter? Because congestion always resolves one of two ways. • Congestion Exit to the upside And when that exit bar hits, the move is often violent. In a normal trade, you would wait for the breakout. You would wait for the bar to close above the previous isolated high and in the top 40 percent of its range. You would wait for the trend dot to flip above the dotted line. But this is not a normal trade. This is a trade backed by millions of dollars of open market insider buying. This is a trade where the CEO himself put roughly 4.5 million dollars of his own cash on the line at almost the exact level where the stock trades today. This is a trade where a director followed with more than half a million of her own money, also open market. When insiders buy at these levels, they are not waiting for congestion exit. They are buying during congestion because they expect the break, and the catalyst behind that break, to be bigger than the technical conditions themselves. In other words, if you wait for the exit, you may be too late. Why I Am Building This Position Over 90 DaysYou already know the plan from the original trade call. We are buying one third of the position each month for the next three months. Why? Because: • Congestion is unpredictable in timing This accumulation approach: • Reduces timing risk If you wait for congestion exit, you may miss the safest part of the move. If you build through congestion, you enter before the crowd. What The Market Is Telling Us Right NowThree things have become very clear since the first briefing.
This is the signature of a stock preparing to move. It is not weakness. It is compression. And compression plus insider buying is often the strongest setup in the entire market. If You Missed Either Of The Foundation Articles, Read Them NowUnderstanding this opportunity requires understanding both the fundamentals and the structure. Read the insider briefing here: And if you are new to technical analysis, read this one next: Both will give you the full context. You’re currently a free subscriber to Market Traders Daily. For the full experience, upgrade your subscription. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Global Profit Systems International are for your informational purposes only. Neither Global Profit Systems International nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.
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A Quiet Breakout Is Setting Up… Most Investors Will Miss It
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