Take a quick look at the 6-month daily bars chart for Blackboard, Inc. (BBBB) below. If you have studied Technical Analysis, you will be able to point out the bullish pattern that has formed with no problem. BBBB is currently trading in a bull flag continuation pattern. The stock popped up with spiking volume, creating the flag pole. It has since traded sideways on decreasing volume, creating the flag.

The expected continuation move, in the event there is a breakout to the upside on high volume, can be measured by the height of the flag pole. In this case the flag pole starts at approximately 30.50 and ends at approximately 33, resulting in a flag pole height of approximately 2.50. Add 2.50 the breakout area of 33, the result is a measured move to 35.50.

Keep your eyes open for the breakout above 33. Make sure volume spikes on the upside move. Once you confirm that the volume is there, you can comfortably enter a long with expectations of a move to the 35 - 35.50 range.



Andy Swan is co-founder and head trader for DaytradeTeam.com. To get all of Andy's day trading, swing trading, and options trading alerts in real time, subscribe to a one-week, all-inclusive trial membership to DaytradeTeam by clicking here.