5 Stocks Poised for Breakouts
One example of a successful breakout trade I recently flagged was TravelCenters of America
Guess what happened? Shares of TA triggered that exact breakout following their earnings report on March 18 with heavy upside volume. Volume that day registered over 3 million shares, which is well above its three-month average action of 431,000 shares. This stock went on to hit a recent high of $9.82 a share, which represents a monster gain in a very short timeframe for anyone who played that breakout. Shares of TA are now setting up again to take out $9.82 a share, so we could still have more upside for this stock in the near future.
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.
Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.
With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.