Our research indeed shows about 40% of stocks that ease back to the pivot (buy) point after a breakout will still go up. However, your best chances of success are when you buy a stock as it breaks out of a sound base on heavy volume.
The important thing to know is that breakouts can still be in good shape unless the stock dives below the pivot point. As always, sell the stock if it goes 8% below your purchase price. Sometimes, you may get away buying a stock when it goes back to the pivot. But that’s not likely to happen in a weak market.