Breakoutwatch Weekly Summary 12/14/19
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|New Record Highs. TGTX Double
For a summary of the major events driving this weeks market action see the Weekly Wrap.
The NASDAQ Composite set a new intraday high on Thursday on above average volume and finished the week 0.9% higher, outperforming the S&P 500 (0.7%) and the DJI (0.4%).
The number of breakouts remained steady at 13 with gains being a modest average 1% for cup and handle breakouts and a loss of 0.6% for Volatility Squeeze breakouts. Anyone who jumped on the squeeze breakout of TGTX on Tuesday was further rewarded on Friday with another breakout after the stock had formed a 2 day handle and qualified as a cup and handle pattern. See below for an analysis of the double breakout.
The intraday charts accessed from the Alerts page now shows the intraday volume level needed for a confirmed breakout.
Our latest strategy suggestions are here.
TGTX Double Breakout
TGTX entered a volatility squeeze on 11/27 when the Keltner Channel fell inside the Bollinger Channel. However, because we require positive and accelerating momentum before entering a stock onto our Volatility Squeeze watchlist, we did not put it onto the SQZ watchlist until 12/09 when volume spiked to 6 times the 50 day average and momentum became positive. The next day (12/10) the squeeze came off and TGTX made a Volatility Squeeze breakout. (To understand how to read a chart for stocks in a volatility squeeze see here)
In making the breakout, the closing price set a pivot on a 6 month cup and handle pattern and appeared on the CWH watchlist on 12/12 having set a 2 day handle. Note that the volume on 12/12 was again higher than the 50 day average, indicating there were many interested buyers. The stock then broke out the next day, 12/13/19.
Note that in both cases the volume prior to breakout was indicative that a breakout could occur.
|Brkout Date||Symbol||Base||Squeeze||Brkout Price||Brkout Day Close||RS Rank*||Last Close||Current % off BOP||Gain at Intraday High|
|*RS Rank on day before breakout.|
|GLDD||11.94||602,024||Great Lakes Dredge & Dock Corporation||Engineering & Construction||91||11.63|
|WSC||18.30||728,740||WillScot Corporation||Rental & Leasing Services||90||17.22|
|SSRM||17.25||1,363,928||SSR Mining Inc.||Gold||88||16.84|
|NAVI||14.64||2,417,478||Navient Corporation||Credit Services||85||14.13|
|RCM||13.01||1,672,278||R1 RCM Inc.||Health Information Services||85||12.13|
|LOCO||16.65||629,967||El Pollo Loco Holdings - Inc.||Restaurants||84||15.35|
|GPRE||15.63||868,785||Green Plains - Inc.||Specialty Chemicals||82||15.17|
|These stocks meet our suggested screening factors
for our Cup and Handle Chart Pattern watchlist.
See Revised Rules for Trading Cup and Handle Breakouts
|Index||Value||Change Week||Change YTD||Trend1|
1The Market Trend is derived from our proprietary market model. The market model is described on the site here.
2The site also shows industry rankings based on fundamentals, combined technical and fundamentals, and on price alone. The site also shows daily industry movements.
|1 Week||13 Weeks||26 Weeks||Year-to-Date|
|1 Week||3 Weeks||13 Weeks||26 Weeks|
|Technical & System Software
|Publishing - Books
|Charts of each industry rank and performance over 12 months are available on the site|
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