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Byline: JONAH KERI
To spot a stock's pivot point, watch its price and volume action as it's forming a base. That way, you'll see the handle start to form ahead of time and be ready to dive in quickly.
Sometimes you may discover a stock a little late. Fortunately, some stocks break out, then form a high handle or second buy point. If you spot the pivot correctly the second time, you can still reap the benefits.
Pawnshop and check-cashing chain EZCorp formed a long base starting in the spring of 2004. While forming its base, the stock twice gapped down in heavy volume, which was a concern (1). But it recovered and started carving the base's right side. The stock ...