Can this $BOX break open? (July 08, 2020)

by DAN BOX 
This is Scott with your Free Chart of the Day. I want to take a look at Box ( NYSE: BOX ). Box ( NYSE: BOX ) broke out here on June 22 and it did it on way higher than average volume, that was a nice day. Ever since then the stock has really been going sideways building a nice base of consolidation. Now me as a swing trader, I love bases of consolidation because that gives you clearly defined levels to define your risk off of.

So here’s what I want to see on Box ( NYSE: BOX ). Now we have this risk established, this nice sideways drift coming on decreasing volume. You can see how the volume has really been dropping off, that is a sign of potential complacency in the stock and I am watching for a breakout on higher than average volume.

Now that we have this sideways drift coming on decreasing volume I want to see us pop above 21.35 here on higher than average volume and continue this move to the upside. Now, that doesn’t mean that as soon as it hits 21.35 that you just want to automatically buy it. You really want to buy it on that higher than average volume.

For me, I like to break things down here to a 10-minute chart or a 30-minute chart and look for volume like this. Now, this isn’t saying I should have bought this at the close because we don’t know yet if the stock is going to break out. As you can see here it has had multiple rejections at this level.

Here’s what I like, I like the fact that we closed at kind of at the top end of the range here and we are right at resistance. So again, looking for a move above 21.35 here on volume and a continuation of this move to the upside. So keep an eye on Box ( NYSE: BOX ). I hope this trade works out; I hope it can break out.

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