Breakoutwatch Weekly Summary 02/20/21
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Number of Breakouts Falls as Consolidation Continues
The NASDAQ slipped 1.6% this week as Treasury yields rose. The large cap tech stocks have been supported by cheap money and the prospect of rising interest rates caused some selling. The technology sector dropped 1.9%. The index did pick up slightly on Friday after Treasury Secretary Yellen reaffirmed that a big stimulus was needed, and vaccination supplies were expected to double soon.
The stimulus, expected to be about 1.5 Trillion, combined with lowering Covid rates, will lead to higher employment and a significantly stronger economy. This will lead to some rotation out of the high priced tech stocks into Financial assets and more value oriented stocks.
There were just two cup and handle pattern breakouts this week but they did deliver a satisfying 9.4% average gain. The Volatility Squeeze watchlist was the only other pattern to deliver breakouts with a total of eight averaging 3%.
Ultragenyx Pharmaceutical Inc. (RARE)
Ultragenix appears to have begun building the right of a handle after substantial profit taking after setting the pivot at 175 six days ago. Volume was well above average on Friday although it just failed to clear resistance at the 50 day moving average level. RARE is unlikely to break out in the immediate future, but taking a position here could be profitable with a possible 18% upside to the pivot point. See Ultragenyx: Multiple Potential Catalysts Ahead
No new features this week
Our latest strategy suggestions are here.
|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.|
|RMED||9.21||591,128||Ra Medical Systems - Inc.||Medical Devices||99||8.62|
|ZVO||7.30||510,738||Zovio Inc.||Education & Training Services||86||6.05|
|CYH||11.45||3,084,344||Community Health Systems - Inc.||Medical Care Facilities||80||8.91|
|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|
|Oil & Gas E&P
|Oil & Gas Drilling
|Charts of each industry rank and performance over 12 months are available on the site|
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