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For Immediate Release
Chicago, IL – October 25, 2021 – Stocks in this week’s article are Grupo Financiero Galicia S.A. GGAL, First Bank FRBA, ICL Group Ltd ICL and CrossFirst Bankshares, Inc. CFB.
4 Affordable Breakout Stocks for Explosive Returns
Selecting breakout stocks continues to be one of the most popular methods utilized by active investors. This technique seeks to identify those stocks whose prices vary within a specific band. In case a stock falls below the lower bound of this band, it may be time to offload it from your portfolio. However, a stock breaking above this channel carries the promise of delivering strong gains.
Spotting Breakout Stocks
The first step to selecting the right breakout stocks is to calculate their support and resistance levels. A support level is the lower bound for stock movements, while a resistance level refers to the maximum price in which it trades over a considerable period.
In other words, the demand for a stock is at its lowest at its support level, which means that most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, which means that they would like to add them to their portfolios. The key to identifying breakout stocks is to pin down those that are on the verge of a breakout or those that have just broken above the resistance level.
Verifying Whether It’s for Real
Stocks that have breached their resistance level should ideally be in high demand among traders. But the test of whether this is a genuine breakout is whether they go on to attain higher prices and the old barrier becomes a new support. This is why it is important to determine whether a long-term price trend is about to emerge.
Only a study of long-term trends can determine whether the existing trading channel has been breached effectively. This indicates the strength of the support or resistance levels. If you can identify the effective channel for a stock, picking it even at a not-so-reasonable price would give you significant returns.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/1814861/4-affordable-breakout-stocks-for-explosive-returns
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Grupo Financiero Galicia S.A. (GGAL) : Free Stock Analysis Report
ICL Group Ltd (ICL) : Free Stock Analysis Report
First Bank (FRBA) : Free Stock Analysis Report
CrossFirst Bankshares, Inc. (CFB) : Free Stock Analysis Report
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