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Byline: DAVID SAITO-CHUNG
In a perfect world, a great stock would rise like an elevator. No nasty reversals. No double dips. Just straight up.
In reality, even the most powerful stocks need a rest along the path to golden gains. A large portion, in fact, of the best winners in any bull market even roll back all the way to their original buy point, shaking out some investors in the process. Then, as the market regains its steam, so does the stock.
It's easy to become frustrated when this happens. After all, no one likes to see a paper gain of 10% to 19% vanish and be forced to sell for a puny profit.
But in IBD's rules for buying and selling stocks, there's no law against buying back a proven winner.
How do you spot such opportunities?
A stock may pull back to the correct buy point within a sound base pattern. If the volume is light and the industry group is holding firm, it may ...