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5 Big Stocks to Trade for Gains


Telus (TU - Get Report) is another name that's been delivering strong performance. In the trailing 12 months, this Canadian communications giant has generated returns of more than 16% on shares -- not counting the company's hefty 4.3% dividend yield. And right now, the technicals point to additional upside in shares:

Back at the end of December, Telus broke out of a textbook inverse head and shoulders pattern, a setup that indicates exhaustion among sellers. From that point, shares rallied more than 5%, but reversed lower at the start of the new calendar year. The reversal wasn't a bad sign, though. Instead, it's a throwback.

>>5 Breakout Stocks to Eye for a Buy

A throwback occurs when a stock reverses after a breakout to come back and test newfound support at the breakout level. If the level acts like support, then traders have a second chance at a low-risk entry in shares. That's exactly what happened in Telus -- the pattern's neckline at $52 acted like support, and shares are coming back to retest the dashed resistance line at $54.

Think of a breakout above $54 as "stage 2" of the original inverse head and shoulders setup in Telus. Wait for that level to get breeched before buying it.

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BHP $47.18 0.17%
BRFS $19.51 -0.20%
CHL $65.07 1.28%
LMT $204.89 1.32%
TU $33.20 -0.33%


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