Zacks.com Highlights: TheStreet, Barclays, Horizon Pharma, Regions Financial And TechTarget
Zacks Investment Research | Mar 11, 2018 09:15PM ET
For Immediate Release
Chicago, IL – March 12, 2018 - Stocks in this week’s article include: TheStreet, Inc. (NASDAQ:TST) , Barclays (LON:BARC) PLC (NYSE:BCS) , Horizon Pharma plc (NASDAQ:HZNP) , Regions Financial Corporation (NYSE:RF) and TechTarget, Inc. (NASDAQ:TTGT) .
Screen of the Week of Zacks Investment Research:
5 Cheap Breakout Stocks for Explosive Returns
One of the most popular methods utilized by active investors is to select breakout stocks. The technique seeks to identify stocks whose prices are fluctuating within a specific band. In case a stock falls below the floor 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.
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, demand for a 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 bona fide 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.
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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