FAS Breakout

FAS breaks out from a pennant on the upper flat side. Breakouts are usually to the flat side. Market has been leading the financials, giving a hint of today's breakout, and markets indicate it will continue.

Today's high is just below the resistance level of 11.53, and the next resistance level at 12.53 may be reached tomorrow. After that, the next level is at 18.31. Point & Figure charting gives a target of 21, so this appears an excellent trade with a stop loss below the flat, breakout line at 10.05. Reward: risk ratio well over 3:1; calculated as (18.31-11.43):(11.43-10.05) or 4.98:1.