Brazilian Follow Up:

We frequently mention, different from popular opinion, that the best stocks offer additional add-on points on the way UP. Many like to add on the way down, and my belief is that is not a winning strategy unless one is dollar-cost averaging with indexes over long periods of time. Below is an example of a possibility of adding to a name as its PRICE appreciates with the chart of PBR, and how it appeared in our 5/10 Energy Note. The stock ignored an upside gap fill, a good sign, from the 2/19 session in May, and eventually went on to break above a cup with handle pivot of 9.96 (obviously round number theory coming into play there). Since last March on its WEEKLY chart, it has made a nice series of higher highs and lows, and before its consecutive WEEKLY losses, it advanced 11 of 13 weeks. The last 3 weeks all CLOSED very tautly within just .22 of each other, coiling action that when taken out to the upside can be very powerful.

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