ADI has been in consolidation mode for 5-6 months now in a steady triangular pattern. I posted the 1 year chart and from that it should be pretty clear what I am talking about. With the market moving steadily higher, I have a tendency to believe the stock will break higher. However, if it turns the other way and breaks down instead of up, you're in trouble. Therefore, I would actually wait until the stock breaks out to buy or short. Now, that we've identified the pattern and the inevitable outcome (break out or down) all you have to do is monitor for surges in volume, news, and price. Once the stock has broken up or down you will then move with the market with a stop a little behind the breakout point.
That's all I have for right now.
CM
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