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Byline: Craig Shaw
It's become a poor climate for buying breakouts, with the market falling siege to distribution days. But don't stop monitoring the stocks that hold above support lines during the sell-off. That way your watch list will be up to date when the rally renews itself.
William Lyon Homes has been tracing a shallow consolidation for eight weeks. While the stock hasn't closed below its 50-day moving average, its current pattern is a risky late-stage base. These have a higher chance of failure since fresh buyers may be in short supply.
The Newport Beach, Calif.-based home builder more than doubled its ...