5 Stocks Poised for Breakouts
An example of a recent successful breakout trade is computer storage device player OCZ Technology Group
Guess what happened? Shares of OCZ triggered that breakout the following trading session on monster upside volume. The stock exploded higher and closed up over $2.40 a share. The next trading day shares of OCZ hit a high of $2.77 a share, which represents a monster gain for anyone who bought the stock off my original article in anticipation of that breakout. Since then, shares of OCZ have pulled back to its current price of $2.08 a share, as profit taking took over. Traders can now look for long-biased trades in OCZ again as long as it doesn't move back below its 50-day moving average of $1.88 a share with high volume.
Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.