This Day On The Street
Continue to site
ADVERTISEMENT
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

4 Breakout Buys for January -- and One Sell

Diebold

Diebold (DBD - Get Report) is another potential reversal play right now. Shares of the $2 billion security and self-service kiosk maker have slid double digits in the last six months, making a reversal a welcome sight for long-suffering shareholders. Here's how to trade it.

Diebold's hasn't just been slipping lower. Instead, it's been moving lower in an orderly trend channel that's bounded by trend line resistance to the upside and trend line support below shares. That support and resistance level give us a good indication of this stock's likely moves within the channel -- and an indication of when this channel is broken. For the last couple of weeks, Diebold has been testing its trendline resistance level; a breakout above that upper bound for the channel means that the downtrend is over.

Momentum adds some extra confidence to this trade -- 14-day RSI has been trending higher since the end of October. Since momentum is a leading indicator of price, that's a very good sign for shares. Still, the downtrend isn't broken yet, and I wouldn't recommend buying DBD until it is.
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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMGN $153.26 0.00%
DBD $34.51 0.00%
IL $11.87 0.00%
HWKN $40.00 0.00%
VSH $11.63 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs