Breakouts sometimes can be very frustrating and can test one’s patience like crazy. Dish TV is doing just that right now.

Here’s how Dish TV broke out in May 2015 with a large bullish candle

Source: Chartalert.com

Post breakout – Dish TV has formed a bullish Horizontal support line around 94.5. Dish TV is now in 8th month doing the same consolidation

Source: Chartalert.com

Generally when consolidation ends – one can hope for stock take off. The only problem – no one knows how long the consolidation will happen. There is only one strategy that works: Have patience and monitor the structure. The Breakout is valid as long as stock trades above 94.5. Hence, one should exit if stock closes below 93.5 because then you never know.

Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication, you agree to make no trade relying in whole or in part on the comments of the writers