MDC Holdings Inc (MDC +$1.56 or +1.81% to $87.96) first appeared in CANSLIM.net's Mid-Day Breakouts Report on January 13, 2005 at $69.28 as it broke out from a short 5-week flat base on above average volume. Afterward MDC rallied +17%, however, as is the case with most successful breakouts, this issue pulled back and consolidated those gains. But a more serious correction occured and a bad losing streak in March pressured the stock under its 50-day moving average (the red line). As the major indices were heading toward their 2005 lows, MDC found support near $64, just above its longer-term 200-day moving average line (the black line).
On May 18, 2005 it gapped above its 50 DMA, and it has not looked back since. After tracing out a 4-month cup shaped base it began reaching into new all-time high ground. It was featured as "noteworthy" and colored yellow in CANSLIM.net Mid-Day Breakouts Report at $85.50 on July 07, 2005 (see here) as it was surging to a new 52-week high close with higher than average volume. It has been steadily advancing, and today's gains came with volume more than three times its average. Since it is now more than 5% above the pivot point, chasing it is not the prudent choice.
