Zacks.com Highlights: Hecla Mining, Cloud Peak Energy, Celsion, QuickLogic And Precision Drilling
Zacks Investment Research | Jan 03, 2018 08:52PM ET
For Immediate Release
Chicago, IL – Jan 04, 2018 - Stocks in this week’s article include: Hecla Mining Company (NYSE:HL) , Cloud Peak Energy Inc. (NYSE:CLD) , Celsion Corporation (NASDAQ:CLSN) , QuickLogic Corporation (NASDAQ:QUIK) and Precision Drilling Corporation (NYSE:PDS) .
Screen of the Week of Zacks Investment Research:
5 Breakout Stocks Offering Terrific Returns
Utilizing a breakout investment strategy is a natural choice for active investors who settle for nothing less than superlative returns. This involves zeroing in on stocks trading within a tight range and buying them when they step out of this band. In keeping with this approach, they are offloaded whenever they move below this narrow band. If properly implemented, such a strategy could deliver impressive returns.
Determining Breakout Levels
The key to this strategy is calculating the support and resistance levels of a stock. The floor of a stock’s trading channel is its support level and it should be sold as soon as it threatens to fall lower. On the other hand, the resistance is a stock's breakout level and it can gain substantially if it breaks the resistance level.
When a stock is close to its support level, demand is literally hitting the floor. On the other hand, demand rises when it is breaching its resistance level, signaling the right time to make a lucrative addition to your portfolio. The idea is to pick stocks which have just broken above their resistance barriers or are very closing to doing so.
Has a Breakout Really Occurred?
The central risk which accompanies 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 breakout to actually happen, 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.
And that's what we're screening for today…
For the rest of this Screen of the Week article please visit Zacks.com at: Original post
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