Globe Life (GL) ⎯ Ready To Breakout?
Any trader who has been in the market during this year’s trading has seen what a clear and obvious channel looks like. Well, Globe Life (GL) might have one of the longest running channels in the market today.
As you can see in the video, GL a very well-defined channel between 105 and 110 where price has been bouncing around for several weeks at this point. A shorter-term trader could should presumably be able to trade off on end of the range to the other, but entries would have to be exact and even then, profits limited.
However, for the longer-term trader, like those of us in the Profit Machines trading community, we would like to see a breakout of this channel, either to the top or bottom side. Even then, we would look for the best possible trade.
A break of the bottom or top line of the channel would likely come with a retest of the former support or resistance level, that would be the high probability trade. Rather than chase any breakout in price, only to see it fall back down and possibly stop you out, the best entry would come at this retest spot. I have seen this type of entry work many times and it tilts the odds back in your favor.
In any case, this is a clear set up traders can keep an eye out for any possible movement. Also, keep an eye out for any news that might give price the momentum to break one of these two levels.
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