For Immediate Release
Chicago, IL – July 8, 2019 - Stocks in this week’s article are SSR Mining Inc. SSRM, Qiwi plc QIWI, Harmony Gold HMY, Kinross Gold Corp KGC and Digital Turbine, Inc. APPS.
5 Breakout Stocks for Outstanding Returns
As popular as it is divisive, a breakout strategy is one of the most frequently used techniques among active investors. The idea is fairly simple — to identify stocks trading within a narrow band and buy them when they move above this channel or sell when they move below. If a stock moves above the channel, it promises substantial gains for investors.
But critics warn against the risk of timing such a move incorrectly or identifying the wrong breakout level. However, when executed correctly, this strategy can yield lucrative gains, which explains its enduring popularity.
Picking Prospective Candidates
In order to identify breakout stocks, you must first determine their resistance and support levels. A resistance level is the barrier which must be broken so as to be identified as a breakout stock. Meanwhile, a support level is the floor for the stock’s movement.
At the breakout level, the demand for the stock has peaked, making it a natural choice for traders. On the other hand, when a stock hits the support floor, traders are eager to offload it. In order to spot breakout stocks, you would have to see which of these are on the brink of breaking the resistance barrier or those that have just breached this level.
Has a Genuine Breakout Occurred?
The primary risk associated with such a strategy is that the decision to buy an apparent breakout candidate has been incorrectly timed. When a stock moves above the resistance level, it should be a highly prized commodity for traders. However, whether such a breakout is at all genuine is another matter altogether.
For a genuine breakout, the stock’s earlier resistance barrier should become its new support level. This only happens if the trading channel that has been established is tested by observing long-term price trends.
The strength of the support and resistance levels can be ascertained only through such a study. Despite the risk of misidentification, correctly identifying such stocks can yield considerable returns, even at a price which may not seem attractive at first glance.
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Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
QIWI PLC (QIWI) : Free Stock Analysis Report
Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report
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