For today's chart we've chosen to take a look at
Comstock Resources Inc. (NYSE:
CRK) because it has been trading within a
horizontal channel for the past two years. As you can see from the chart below, the recent break beyond the confined range is suggesting that the period of sideways momentum is over and that we could see a continued move higher. Given the breakout, we believe that the bulls will remain in control of the long-term momentum.
Another aspect of the chart that has caught our attention is how today's fresh 52-week high has pushed the stock into uncharted territory. This new all-time high means that there are no established levels of
resistance that stand in the way of a move higher. We'd expect the former resistance ($34) to now act as an area of
support and to prevent the bears from sending the price lower.
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