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Zacks.com featured highlights include: Vale, Fibria, TechTarget and CBIZ

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For Immediate Release

Chicago, IL – February 22, 2018 - Stocks in this week’s article Vale S.A. (VALE - Free Report) , Fibria Celulose S.A. (FBR - Free Report) , TechTarget, Inc. (TTGT - Free Report) and CBIZ, Inc. (CBZ - Free Report) .

4 Affordable Breakout Stocks for Stupendous Returns

Selecting breakout stocks is probably one of the most favored techniques among active investors. The idea behind this kind of stock selection is to determine which stocks are trading within a narrow channel. These stocks are to be bought as soon as they move above this band and sold when they fall below. In case a stock moves above this band, it usually gains momentum.

However, market watchers warn against incorrectly timing such a move. This is because of the significant risk of identifying stock movements as breakouts, which in reality are not so. At the same time, when this strategy is utilized judiciously, it yields substantive gains, which is the reason why it remains popular.

Spotting a Breakout Stock

The first step to selecting the right breakout stock is to calculate its support and resistance level. A support level is the lower bound for stock movement while a resistance level refers to the maximum price which it trades within over a considerable period.

In other words, demand for a stock is at its lowest at its support level, which means most traders are willing to sell it. At the resistance level, most traders are willing to go long on the stock, which means that they would like to add them to their portfolios. The key to identifying breakout stocks is to zero in on those that are on the verge of a breakout or those that have just broken above the resistance level.

Identifying Whether It’s for Real

Stocks which have breached their resistance level should ideally be in high demand among traders. But the test of whether this is a genuine breakout is when they go on to attain higher prices and the old barrier becomes a new support. This is why it is important to determine whether a long-term price trend is about to emerge.

Only a study of long-term trends can determine whether the existing trading channel has been breached effectively. This indicates the strength of the support or resistance levels. If you can identify the effective channel for a stock, picking it even at a not-so-reasonable price would lead to significant returns.

For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/293071/4-affordable-breakout-stocks-for-stupendous-returns

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

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Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine.  But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use.

Strong Stocks that Should Be in the News

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.




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TechTarget, Inc. (TTGT) - free report >>

VALE S.A. (VALE) - free report >>

Fibria Celulose S.A. (FBR) - free report >>

CBIZ, Inc. (CBZ) - free report >>

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