Actionable news
0
All posts from Actionable news
Actionable news in XL: XL GROUP PLC,

These 5 Stocks Are Ready to Break Out

Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players who can ultimately push the stock significantly higher.

Breakout candidates are something that I

. These are also the exact type of stocks that I love to trade and alert to my subscribers in real-time. I frequently flag high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and possibly trade higher from current levels.


XL Group

One financial player that's starting to rip within range of triggering a near-term breakout trade is XL Group (XL - Get Report) , which operates as an insurance and reinsurance company. This stock has trended off notably over the last six months, with shares down by 11.8%.

If you take a look at the chart for XL Group, you'll notice that this stock recently gapped-down sharply lower from around $36 a share to its low of $31.92 a share with heavy downside volume flows. Following that sharp move lower, shares of XL Group have now started to rebound off that $31.92 low with strong upside volume. Volume on Thursday registered over 5 million shares, which is well above its three-month average action of 2.42 million shares. This high-volume rebound is now quickly pushing this stock within range of triggering a near-term breakout trade.

Must Read: 5 Stocks Insiders Love Right Now

Traders should now look for long-biased trades in XL Group if it manages to break out above some near-term overhead resistance levels at Thursday's intraday high of $33.13 a share and then above its gap-down-day high of $34 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 2.42 million shares. If that breakout takes hold soon, then this stock will set up to re-fill some of its previous gap-down-day zone that started near $36 a share.

Traders can look to buy XL Group off weakness to anticipate that breakout and simply use a stop that sits right below some near-tem support at $32.50 a share or around its recent low of $31.92 a share. One can also buy this stock off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.


Whole Foods Market

A grocery stores player that's starting to trend within range of triggering a near-term breakout trade is Whole Foods Market (WFM - Get Report) , which operates natural and organic foods supermarkets. This stock has popped to the upside modestly over the...


More