For Immediate Release
Chicago, IL – December 4, 2019 - Stocks in this week’s article are BioDelivery Sciences International, Inc. (BDSI - Free Report) , Air Industries Group (AIRI - Free Report) , Hallmark Financial Services, Inc. (HALL - Free Report) and Vector Group Ltd. (VGR - Free Report) .
5 Affordable Breakout Stocks for Stunning Returns
Selecting breakout stocks continues to be one of the most popular methods utilized by active investors. This technique seeks to identify stocks with prices moving within a specific band. In case a stock falls below the lower bound of this band, it may be time to offload it from your portfolio. However, a stock breaking this channel carries the promise of delivering strong gains.
Spotting Breakout Stocks
The first step to selecting breakout stocks is to calculate their support and resistance levels. A support level is the lower bound for stock movements while a resistance level refers to the maximum price which it trades within over a considerable period.
In other words, the demand for a stock is 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.
Verifying Whether It’s for Real
Stocks which have breached their resistance level should ideally be in high demand among traders. But the test of a genuine breakout is seeing whether they go on to attain higher prices with the old barrier becoming a 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 give you significant returns.
For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/652401/5-affordable-breakout-stocks-for-stunning-returns
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