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Breakouttrade

Breakout Trade in VNTVontier is an industrial machinery company setting up in a textbook breakout pattern. After surging more than 50% off the October lows and reclaiming its 200-day moving average, shares have consolidated in a series of shallowing pullbacks. Retracements have tightened from 11% to 7% to just 4.5% with resistance at 27.50. Look for a breakout above 27.60 on above average volume as the entry trigger. My stop would be just beneath the swing low at 26.15 to risk 5% on the trade.
NYSE:VNTLong
by rossgivens
Long Trade in DKNGThe leisure gaming group, as a whole, is setting up in a textbook breakout pattern. Group moves like this can be powerful. The combination of a group move and a similar pattern from an individual stock within that group can lead to a strong advance higher. DraftKings is breaking out of a clean base in the beginning of a new Stage 2 uptrend. If you look at a daily chart, you'll see the stock is up 13% this week but running into longer term resistance. Ideally, DKNG would consolidate for a few days in the HKEX:21 - HKEX:22 range to absorb any supply from sellers looking to exit near 52-week highs. There are 2 places I would consider buying this stock… First would be a breakout to new highs above HKEX:22 on above average volume. This would signal to me that funds are still buying heavy, and I would want to be along for the ride. The other potential buy point would be a pullback into the moving averages and this week’s breakout area. At HKEX:19 - HKEX:20 a share, I would be a buyer in DKNG with a sell stop just beneath the 50-day moving average.
NASDAQ:DKNGLong
by rossgivens
Long Trade in IGTThe leisure gaming group, as a whole, is setting up in a textbook breakout pattern. Group moves like this can be powerful. The combination of a group move and a similar pattern from an individual stock within that group can lead to a strong advance higher. IGT stock just made new 52-week highs. After a shakeout move in mid-March, the stock completed a textbook cup-with-handle pattern and broke out through resistance at $27. The 200-day moving average has turned up, and all other key moving averages are trending higher and supporting the stock. Depending on one’s risk tolerance, IGT could be bought here. My stop would be at 25.75, just below the 50-day moving average and the recent swing low. That would equate to a risk of 8.4% on the trade. If IGT pulls back to the HKEX:27 area, that would be a great place for a pullback buy or to add on to the position.
NYSE:IGTLong
by rossgivens
DOTUSDT Time to breakout?DOTUSDT is currently in an accumulation phase, as the market is consolidating below the key level of $7 on a weekly basis. During this phase, the price has been printing Higher Highs and Higher Lows, which indicates that buyers have been gradually gaining strength over sellers. An accumulation phase is typically characterized by a period of sideways movement in the price, as buyers and sellers work to establish a new equilibrium. This can often take place after a prolonged downtrend, when investors are looking for a bottom in the market. In the case of DOTUSDT, the accumulation phase is occurring below the important $7 level, which is a critical area of support and resistance. This level has held as a strong barrier to upside movement in the past, and as such, any potential breakout above it could signal a significant shift in market sentiment. As we wait for a new breakout, it's important to keep an eye on Plancton's rules, which are a set of guidelines for identifying potential market movements. If and when a new breakout occurs, we can apply these rules to help guide our decision-making and potentially open a new long position. ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <= 1h structure. Follow the Shrimp 🦐
by InkyGrip
10
GALAUSDT is ready for the breakout?The current price of GALAUSDT is testing a dynamic resistance level in the $0.05 area where the market also has a static daily resistance level. Additionally, the price is creating an inverse head and shoulders pattern, which is a technical chart pattern that may indicate a potential trend reversal from a downtrend to an uptrend. An inverse head and shoulders pattern consists of three distinct troughs or valleys with the middle trough being the lowest, forming the "head," and the two outer troughs forming the "shoulders." The middle trough or the "head" is typically lower than the shoulders, and the pattern is completed when the price breaks above the "neckline," which is a trend line drawn connecting the high points between the shoulders. If the price of GALAUSDT is able to break out from the neckline of the inverse head and shoulders pattern and the market satisfies Plancton’s rules, it may be a signal for a long position. To satisfy Plancton’s rules, a trader may have a predetermined entry price, set stop loss and take profit levels to manage risk and maximize profits, and monitor the price action for any signs of a trend reversal or invalidation of the initial analysis. ––––– Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ black structure -> <= 1h structure. ––––– Follow the Shrimp 🦐
by InkyGrip
13
MKRUSDT is loading a breakout?MKRUSDT recently experienced a false breakout from the daily resistance level, which is a key level that often represents a point of strong supply and demand. When the price breaks through this level, it can indicate a significant shift in market sentiment and a potential change in trend direction. However, in this case, the breakout turned out to be false and the price is currently inside a descending channel. The market will need to create a new breakout from the static resistance level at around $760 for any long continuation to occur. This level is another key area of support and resistance and is a crucial level to monitor as it can indicate the direction of future price movement. If the price breaks above this resistance level, we can apply Plancton's Strategies, a set of guidelines for identifying potential market movements, to help guide our decision-making and potentially open a new long position. According to Plancton's strategy , we can set a nice order ––––– Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ black structure -> <= 1h structure. ––––– Follow the Shrimp 🦐
by InkyGrip
12
Long trade in TOSTTOST went public in late 2021 - just in time to get slaughtered in last year's bear market. But the stock is now turning around. I like the late-2021 and 2022 IPO bucket since a lot of these names have not had a chance to shine in a healthy market. Many are trading for a fraction of their IPO price and beginning to shine. TOST is one of them. After nearly doubling off its lows in the middle of last year, TOST began forming a large consolidation base. Notice how the stock respects its 200-day moving average. What was initially resistance has become support after reclaiming the 200-day, and TOST is now breaking out to new 52-week highs. Last week's pullback to the 21-day moving average (blue line) was immediately bought. We are seeing tennis ball action as TOST jumps right back to its highs which is a good sign of support buying. We are seeing the first base breakout in the stock's history which, historically, has led to substantial upside moves in new companies with game-changing products like Toast. NOTE: The company reports earnings on Thursday, 2/16 so I will be keeping exposure light until we see the numbers and how the stock reacts.
NYSE:TOSTLong
by rossgivens
💥 3 Types of BreakoutIn trading, the term "breakout" refers to a price movement that "breaks" past a certain level or range. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. A breakout is a potential trading opportunity that occurs when an asset's price moves above a resistance level or moves below a support level on increasing volume. The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout strategy, know when to cut your losses and re-assess the situation if the breakout sputters. As with any technical trading strategy, don't let emotions get the better of you. Stick with your plan and know when to get in and get out. 📈3 Key things to know about Breakouts📉 📍A breakout in the stock market refers to a situation where the price of a security moves beyond a pre-defined support or resistance level, accompanied by an increase in trading volume. Traders often take advantage of breakouts by entering a long position when the price surpasses resistance or a short position when it falls below support. This movement beyond a price barrier often leads to increased volatility and a trend in the direction of the breakout. 📍Breakouts are highly valued as a trading strategy because they can signal the beginning of heightened volatility, substantial price movements, and major trends. This phenomenon can occur in various market conditions and is particularly noticeable in the case of channel breakouts and price pattern breakouts, such as triangles, flags, or head and shoulders patterns. As volatility contracts during these periods, it typically expands once the prices move beyond the established range. 📍Breakout trading can be applied to various trading styles and timeframes, including intraday, daily, or weekly charts, making it a versatile strategy for day trading, swing trading, or any other approach. 🔹 Trend Line Breakout: This occurs when the price breaks past a trend line that has been connecting a series of lows or highs. 🔹 Support and Resistance Breakout: This occurs when the price breaks past a significant level of support or resistance. 🔹 Flag and Pennant Breakout: This occurs when the price breaks past a flag or pennant pattern, which is a short-term consolidation pattern. 🔹 Rectangle Breakout: This occurs when the price breaks past a rectangular price pattern, which is a pattern of price congestion. 🔹 Volume Breakout: This occurs when the volume of trades surpasses a significant level, indicating a potential change in trend. It's important to note that breakouts can be false, meaning the price could reverse its movement after the breakout. Hence, traders often use confirmation techniques to confirm the validity of a breakout. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
20
Long trade in CPRXCPRX is the #1 stock in the biotech group by almost every metric. The table on the chart shows its ranking out of all 795 biotech stocks by 3 metrics from IBD's MarketSmith. Sales and earnings are surging and the rate at which both are growing has increased in each of the last 4 quarters. The stock made a false breakout on December 14 when the market gapped up on CPI data. It then put in a shakeout move to hit stops before rallying right out of its base. I am taking a small position in the stock here with a tight stop at 17.65. I want to see new highs in the next several days to confirm the breakout has legs.
NASDAQ:CPRXLong
by rossgivens