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Byline: JONAH KERI
In a choppy market, stocks often break out, then pause. That kind of action requires patience. It can also yield great opportunities.
Take Southwestern Energy. The explorer and producer of oil and gas has forged a strong run-up dating back to March 2003, the start of the market's rally.
The stock ran up to a high of 25.49 on Dec. 29, 2003, then started forming a base. If you draw a silhouette around the next five weeks of action, you can see the left side of a cup taking shape (1).
The base's right side took nearly four weeks to form, meaning the pattern wasn't shooting straight up from the bottom (2). The handle formed for four ...