Option Investor
Glossary

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Building Steam

A big move before a stock breaks out. A small pre-breakout dip to gather strength for the upward push above the moving average. Once the stock crosses above the top of the base (resistance) it should cross above the moving average. This move should start to turn the moving average up. Then the stock should start it's climb and as it corrects back to the moving average, the next run up should create a new near term high.