The remaining shareholders were content at the prevailing market price. Any new bout of strong buying would have to bid up the price to find sellers. And that's exactly what happened. Keane broke out of the handle on a burst in trading volume. From there, the stock was off to the races.
Scads emerge during bear markets and corrections, with many breaking out as the market turns higher.
In Keane's case, the stock was well into the right side of the cup when the market recovered from the 1996 summer correction and began a new advance. You should pull the trigger once the stock moves one-eighth of a point above the peak price in the handle. Traders call this the pivot point. Once a stock clears it, the price can move very fast. Delay, and the stock may extend beyond a safe buying level.