Charts that have strong fundamental eg good sales growth , good net profit , good eps growth (or if you are using the CANSLIM formula). Their explosive move in chart pattern are enhance if they were the chosen ones into the thematic play for the sector .USUALLY these stocks exhibit good chart pattern behaviour.
Rememember the good tech run in 1999 to early 2000 all the tech stocks exhibit very good chart pattern like Ben Johnson dash for 100m. Look now at stocks like unisem mpi etc?Are they nice to look at? Are they explosive like the yesteryear?
So always on the look out for charts that those are handsome and pretty to look at.
Erratic charts shows erratic performances of fundamental with less than superior CANSLIM chiteria .Unless the 'composite operator' painted and make up the charts to look beautiful.
Thanks for reading
