[isatrader]

GALE - Looks like a stage 2 breakout a few weeks ago with impressive volume. Also, there is no major resistance nearby, and this is a strong sector. It also looks like this week we saw a pullback, so this might actually be the ideal time for an investor to enter this stock. I'd love to get some opinions here.

anupam384 brought up GALE in the investor watchlist thread on the 15th Nov http://stageanalysis.net/forum/showthrea...08#pid2208 and I noted that it needed to close above the $3 level to become a Stage 2 continuation. Which it has and has moved over 30% since then, so the problem now is that it's a long way above the continuation entry point and stop loss position, so there's additional risk that needs to be considered.

However, we are coming up to month end and a look at the monthly chart shows a potential monthly Stage 2A breakout if it can close the month above the $3 level, and monthly volume looks like it will be greater than the 2x average that we look for and relative performance is also above the zero line. So it does look to have very good potential for a decent Stage 2 run. But the entry is tricky.