This Stock Is Awaiting A Key Price Breakout

Trading success is positively correlated to preparation.

When a stock is on the threshold of a major breakout, you need to be aware of it before it happens. A case in point is one of our Model Portfolio stocks this quarter - Insulet Corp (PODD). We favor strong stocks in strong industry groups. But the next best thing is a strong stock in an improving industry group. PODD seems to fit the latter:

Enter Insulet Corporation (PODD):

I see a year-long bullish cup with handle pattern in play here. PODD surged with its latest quarterly earnings report, both on an absolute and relative basis. The really good news is that I'm seeing its industry group - medical equipment ($DJUSAM) - potentially breaking out of its 1-year downtrend pattern. The AD line on PODD is quite strong, suggesting Wall Street is likely already accumulating the stock. Therefore, a breakout in PODD, together with further strength in the DJUSAM, could lead to a rapidly-rising stock into year end and into 2023.

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