Trading Strategy: Bullish 1-2-3 Continuation following Bullish Wide Range Bar (+WRB) from an oversold buy setup on Minor Support (mS). After making a new 52-week high, BMC retraced back to the breakout area, which is mS. After selling off for nine days, it closed with a +WRB last Friday out of the oversold buy setup, which is bullish. Yesterday, it closed with an inside day, with relatively equal highs, and holding less than 1/3 retracement into the +WRB. This is a Bullish 1-2-3 Continuation if it trades over yesterday's high. If it clears this recent resistance, there is not much overhead resistance until the high $20s, giving us a favorable reward-risk play.

chart courtesy of Mastertrader.com

Tip: A Bullish 1-2-3 Continuation from a +WRB out of a base has high odds of moving up to the prior supply area.

The Play: Buy above previous day's high ($20.09), with a protective stop under previous day's low ($19.90).

Objective: A move of $.75 to $1.25 LOW TO MEDIUM RISK

Play Review:

SWKS reached a target price.

New Monthly High         Break under 20MA