Zacks.com Featured Highlights Include: SSR, Qiwi, Harmony, Kinross And Digital Turbine

For Immediate Release

Chicago, IL – July 8, 2019 - Stocks in this week’s article are SSR Mining Inc. (NASDAQ:SSRM) , Qiwi plc (NASDAQ:QIWI) , Harmony Gold (NYSE:HMY) , Kinross Gold Corp (NYSE:KGC) and Digital Turbine, Inc. (NASDAQ: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.

For the rest of this Screen of the Week article please visit Zacks.com at: Zacks Investment Research

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Written By: Zacks Investment Research