Reasons: 1. Low-risk entry point 2. Confirmed stage 2 uptrend 3. Has gone through a majority line of supply 4. A breakaway move, the first breakout after the stock in a confirmed stage 2 uptrend 5. High relative strength 6. Volume dries up as less supply coming to the market 7. Huge volume on the breakout
Flaws: 1. The market is still in a hard-penny environment with only 32% of total stocks above the 200-day MA 2. The index is moving higher but there are still less stocks setting up.
This is a textbook VCP setup breaking out. I like to see some follow through action from now.