It's Still Important To Find Those Key Bullish Patterns

It wasn't too long ago that I pointed out a key overhead price resistance on Tractor Supply Company (TSCO) at 207.

We needed to see a breakout as we can't assume a breakout will happen. TSCO did later breakout above that key resistance. During bullish patterns, many times breakouts are required to confirm those bullish patterns. Yelp, Inc. (YELP) is a company that currently resides on our Strong Earnings ChartList (SECL). It's printed a gorgeous cup and it appears the beginning of a handle may be forming:

Enter Yelp, Inc. (YELP):

While we didn't know a cup was forming in September, we did know that gap support resided just above 32, the level from which YELP gapped up from in early August. The right side of the cup formed throughout much of October as price made its way all the way back up to 39 - and failed (for now). YELP is a leader in consumer services and has a very strong AD line. I believe the 36-37 area is where YELP could be headed short-term, where I'd be a buyer. A breakout above 39 would measure to 45-46. Keep this one on your radar.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.