James Taulman
2
All posts from James Taulman
James Taulman in James Taulman,

Two TrendLine Set Ups Looked Poised to BreakOut

Each day I’m looking for high-ranked, fundamentally sound stocks which are setting up in bases, and that could become buyable breakouts. These have been our traditional set ups for nearly 15 years.

While looking for those, I’m also looking for any “themes” let’s call them, to emerge which may be occurring within the 100s of stock charts that I am looking at each day.

For example, I may see several stocks in the same group nearing or making new highs. Group Leadership. That’s a theme.

I may see more stocks selling off on volume vs stocks that are advancing on volume. Distribution. That’s a theme.

Or as it has been lately not many “traditional” set ups. Such as a flat base, cup with handle, etc. Not much to do. That’s a theme.

Recently, I noticed several stocks that have broke out of downtrends and several that may be setting up to break out. Let’s call this theme – Trendline SetUps.

Here is a little about trendline set ups/breakouts.

When tracing out the downtrend, you need at least three points to define the trend. (See the green circles on the charts below.)

The more points you can connect the better.

Also, having those points fairly evenly spaced adds significance as well. Connecting a point that may be too far back in history may not have as much relevance to today’s price action.

Another thing, since you are not buying a breakout to new highs, you need to watch for areas of resistance that may loom above your purchase price. These areas can include the 50 or 200-day moving averages or some previous price high or lows. These areas can halt any price progress. However, a break above – not only shows technical strength – but also turns that area into your support, which is nice.

Also, we can use the same trendline (blue line) that was resistance before the breakout as support after a breakout. In the event of a pullback, watch to see if shares hold or fall below that line. Just like with our traditional breakouts – say out of a flat base to new highs, we would not want to see a break back into the base.

Here are two for today….

#1) Group 1 Automotive Inc. (GPI – NYSE)

Shares continue to basically hold the 200-day moving average. We are watching for a break from the trend. This break would be of technical significance, and would trigger a buy signal, especially if the gains are made with volume.

#2) Avago Technologies Limited (AVGO – Nasdaq)

Not only does this stock have the technical characteristics that I look for in a TrendLine Set Up, but also the company has solid fundamentals as well. The stock is also very highly-ranked.

A breakout of the current downtrend would have this stock clearing resistance of its 50 and 200 DMAs.

James F. Taulman – For more than 8 years James had served as Editor-in-Chief an independently licensed website that offered stock reports and services based on the CAN SLIM® investment system.

He has developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy.Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.

Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.

James now runs two websites and a portfolio service where he features select stocks which match up very favorably with the guidelines of the winning investing system.

At his long-standing SundayStockReport.com website, he produces a weekly newsletter that includes his High Ranked Leaders Watch List, and ongoing portfolio style coverage on breakouts from that concise list.

His newer site, BuyingBreakOuts.com is where he offers a stock watch list each market morning, emailed out as a Stock WatchList Morning Update. This report contains his hand selected stocks which looked the most poised to break out. There are also real-time “BreakOuts Alerts!” of stocks from that list which trade above his Trigger Price. These are sent via email to those who sign up for this free service.

Most recently James introduced - James Taulman’s Personal Portfolio Service where he gives specific BUY, HOLD or SELL calls on suitable high-ranked market leaders. These selections have solid fundamentals along with bullish technical chart patterns. He also presents stocks for shorting and gives, SHORT and COVER alerts on those as well.

He designed this service to take only what he sees as the most sound stock selections from all of the services which he currently offers. This new service is basically how he uses the information which he has available to him, to trade a personal brokerage account.

________________________________________________________

Disclaimer: James Taulman is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The independent contractors and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company’s website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company’s products (collectively, the “Information”) are provided for informational and educational purposes only and should not be construed as investment advice.