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Charts courtesy of stockcharts.com

Tuesday, August 30, 2011

PSMT

PSMT was already a leading stock when it became the second of the discount and variety stores group to break out in as many days. This actually has one of the weaker price relative lines we have looked at recently, but it still  broke out before price. This look like a double bottom pattern, which would have an O'Neil breakout point at the blue horizontal line (which means you would have bought it yesterday), but I don't believe the pattern is long enough to be a valid double bottom. It still looks quite impressive, though.

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