[Amedee]

[/quote]

It's made a Stage 2 continuation, but the volumes fairly weak still. For continuation breakouts from a significant consolidation like that one you ideally want to see at least 3x the average daily volume on the breakout day, and then the 2x weekly average volume requirement by the end of the breakout week. So yes, it's back in Stage 2 and may go higher from here, but it is not showing any energy to go significantly higher via a change in the recent volume. And one of the main components of Weinstein's method is to consider is the opportunity costs (see page 97 in the book) of any trade you are considering.
[/quote]

Thanks for pointing out about the opportunity costs. I re-read that part, interesting enough! In P&F charting they say you always have to look left (on the chart). That way you can see the resistance or support zones.
That's a point that, in my opinion, speaks in the advantage of DEPO. Apart from the volume, it enters 'virgin territory'. I mean, it starts trading above resistance zones so it could become even more interesting.
   
   
In other words, I wonder if the advantage of virgin territory doesn't compensate for the lack of volume. Weekly volume was of little meaning but daily volume was 1.795.029 in stead of 400.000 - 800.000... I wonder, can weekly volume pick up this week, because the breakout was near the end of the former week?
Another advantage is the price objective for DEPO which is $27. This gives us, when buying at $17, a RR of 4!
- PO or price objective = 27 - 17 (price bought) = $10 reward
- SL or stop loss = 14.5 > 17 - 14.5 = $2.5 risk
- RR or Reward to risk = 10/2.5 = 4
And besides volume and virgin territory, I also like the P&F RS chart which is giving a spread triple top buy signal (another strong sign).
   
We will see

PS I am trying to insert the printscreens in this post. I hope it works out (it doesn't show up in the preview)