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Breakouttrades

Long Trade in ONONOn Holdings, the maker of OnCloud tennis shoes found on soccer moms everywhere, is one of the hottest stocks in the market right now. It went public in 2021, just in time to get hammered in the bull market. But shares have come back with a vengeance. ONON has already doubled this year and is making new all-time highs as I write this. Notice the textbook consolidation pattern followed by a pocket pivot breakout through resistance. This is healthy action and exactly what we expect from stocks under institutional accumulation. We have a little time before this one reports earnings. The announcement is scheduled for a week from Tuesday on May 16th before market open. If I had a profit cushion of at least 10%, I’d probably hold this one through the report.
NYSE:ONONLong
by rossgivens
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
RBC Breakout Long TradeRBC is seeing incredible growth. I've overlaid the last 4 quarters of sales and earnings growth from MarketSmith on the chart. Any company that can double their sales every quarter for a year has explosive upside. The numbers of institutional funds who own the stock is steadily growing, and it is owned by some of the best-performing mutual funds including T.Rowe Price New Horizons and Lord Abbett Developing Growth. After a huge rise over the summer, RBC stock has consolidated in a series of shallowing retracements as the stock works through sellers in the $250-$260 area. Once these sellers are exhausted and the weak hands are out, RBC will be further consolidated into institutional hands and free to continue its advance higher. Traders could buy here with a 5% stop beneath the swing low or wait for a break of the trendline to initiate a buy. DISCLOSURE: I own shares of RBC and have an order to buy more on a move above 254.10.
NYSE:RBCLong
by rossgivens
DKS Breakout Long TradeDicks Sporting Goods (DKS) is breaking out from a textbook cup with handle pattern. After nearly doubling in price between May and August, the stock stalled and formed a small pivot at the $115 resistance level. Relative strength has been climbing for several months - a sign that Dicks has been leading the surge higher and outperforming the rest of the market. Even in the late August market selloff, DKS held its ground and posted higher RS readings. I’m looking for a continuation of the breakout that began on Friday.
NYSE:DKSLong
by rossgivens
1
Breakout Trade in CSIQCSIQ is a market leader in today’s #1 sector - solar energy. Shares soared over 60% between July and August as solar stocks came front and center as a leading theme in the market recovery. The 200-day moving average has begun sloping upward, putting CSIQ at the beginning of a new Stage 2 uptrend (see my previous post on the 4 Stages of the Stock Cycle). The pink dots on the relative strength line on top of the chart signal new RS highs being made by CSIQ. In other words, the stock has held up better than the general market over the last couple weeks. I’d like to see Tuesday’s action stay inside of Friday’s range to post a true inside day. If that happens, I will look to buy on a breakout above the Friday candle at 46.25.
NASDAQ:CSIQLong
by rossgivens
Where I'm Buying CPRXCatalyst Pharma (CPRX) is an absolute monster. Not only is the company posting huge sales and earnings growth in a sector that rarely has either, the stock has more than doubled over the last few months. There are 801 stocks in the biotech group tracked by Investors Business Daily, and CPRX ranks at the very top (see image in chart). After such a large advance higher, we must remain cautious to the possibility of a retracement. So we need to see signs of additional strength to trigger an entry. I’m watching for a move above last week’s high for my buy signal. This way, I can place a stop below last week’s low and still get away with a risk of 8% or less on the trade.
NASDAQ:CPRXLong
by rossgivens
NBIX Breakout TradeNBIX is in the biotech sector which I have been highlighting for several months as one of the strongest areas in the market. After emerging from a textbook breakout pattern in early August, shares have consolidated in a tight handle formation. If you look at the relative strength line at the top of the chart, you will notice three pink dots over the last several days. These show the RS line making new highs. Although the stock drifted sideways, the rest of the market has been in an ugly correction, so NBIX is actually holding up better than most other names. I'm looking for a breakout on volume above its down sloping trendline.
NASDAQ:NBIXLong
by rossgivens