This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Eurozone Technical Setups for Breakout Gains

Koninklijke Philips Electronics

Koninklijke Philips Electronics (PHG - Get Report) is another Dutch firm that's forming an actionable technical setup this week. In fact, this stock is another example of a triangle -- just one of a different variety. Shares of this consumer electronics maker are forming a symmetrical triangle (sometimes also called a coil), a price setup that's formed by two converging trendlines.

In the technical lexicon, symmetrical triangles are a lot like the popular pennant pattern; the key difference is timeframe. While a pennant may form over days or weeks, symmetrical triangles form over weeks or months. In Philips' case, the triangle we're watching has been forming since all the way back in late October.

Often, these patterns are thought of as continuation patterns - that is, patterns that give a stock a chance to consolidate before continuing a move in its original direction. While that's a decent rule of thumb, it's best to look for a break outside of the triangle in either direction, then take a position in the direction of the breakout.

Either way this trade develops, I'd recommend placing a protective stop right at the 50-day moving average in case Philips makes an unexpected move against your trade.

Philips is one of the top-yielding consumer durables stocks. For more on dividend stocks, check out " 7 Dividend Stocks Paying More Cash in 2012."
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DEO $109.23 0.83%
PHG $27.62 0.40%
ROVI $15.97 -9.36%
UN $44.55 1.20%
STO $17.40 -1.08%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs