AT&T, Verizon And Spectra Push Higher Following January Breakouts

Back on January 22, Benzinga identified three stocks making major bullish price channel breakouts in their charts. At the time, the S&P 500 had plunged more than 5 percent in only three weeks in 2016 and market sentiment was extremely bearish.

However, in the midst of all the selling pressure, Benzinga identified AT&T Inc. T, Verizon Communications Inc. VZ and Spectra Energy Corp SE as three stocks making fresh short-term price channel technical breakouts.

Related Link: Analyst Warns: Use Stock Rally To Sell, Recession Odds Now 33%

As it turns out, the market found some stability in February and has started out March on a high note. Overall, the S&P 500 has booked a 4.5 percent gain since the January 22 breakout calls. However, the three breakout stocks identified above have more than doubled the return of the S&P during the past seven weeks. In fact, the three stocks have produced an average gain of 9.3 percent over the past seven weeks.

On an annualized return basis, that's a 69.5 percent gain, not too bad in a market that has been trading mostly sideways for months. These three stocks are just one example of how diligent traders can use technical analysis to single out stocks with alpha-generating short-term momentum.

Disclosure: the author holds no position in the stocks mentioned.