Breakouts. Everybody wants them, but not everyone can find them.
Stocks that break through key levels of resistance are usually sending a signal that higher prices are coming. Many a great run started at the point of a strong resistance breakout point. The difficulty for most investors and traders is isolating stocks that have those clear breakout points.
A Look Back
Take for example Radius Health Inc RDUS.
From the end of January until the beginning of June, Radius had established a strong level of resistance at $50. Once the stock broke through that level in mid-June, it was off to the races for the stock.
Another example would be Agenus Inc AGEN.
For about two months, Agenus was stalling at $5.75, but toward the end of April, the stock finally popped through that mark. That breakout led to a high of around $10/share, a run up of about 80 percent a share.
So, the question now is finding a stock that is getting ready to break out.
Take a look at Sucampo Pharmaceuticals, Inc. SCMP.
Over the past two months, Sucampo has hit a wall at $17.50 on three separate occasions. However, on Friday, the stock finally busted through that level and seems poised to run higher.
Obviously, investors must conduct their own due diligence before investing in any security, but stocks breaking through key areas of resistance are the ones that commonly run higher.
Image Credit: Public Domain© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
