For Immediate Release
Chicago, IL – October 2, 2018 - Stocks in this week’s article include: General Finance Corp. (GFN - Free Report) , Northern Oil and Gas, Inc. (NOG - Free Report) , American Outdoor Brands Corp. (AOBC - Free Report) , Amber Road, Inc. (AMBR - Free Report) and Oxford Immunotec Global PLC (OXFD - Free Report) .
Screen of the Week of Zacks Investment Research:
5 Cheap Breakout Stocks for Stellar Returns
Picking breakout stocks is probably one of the most popular techniques that active investors utilize. The key to this kind of stock selection is to identify stocks that are trading within a narrow band. Such stocks are to be acquired as soon as they move above this channel and are sold when they fall below. In case a stock moves above this band, it normally gains momentum.
Identifying 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.
Is This a Genuine Breakout?
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 genuine 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: https://www.zacks.com/stock/news/325565/5-cheap-breakout-stocks-for-stellar-returns
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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.
About Screen of the Week
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
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has more than doubled the market from 1988 through 2016. Its average gain has been a stellar +25% per year. See these high-potential stocks free >>.
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Contact: Jim Giaquinto
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