DELAFIELD, Wis. ( Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.>>4 Red-Flag Stocks to Sell This Summer One example of a successful breakout trade I flagged recently was shipping player Eagle Bulk Shipping ( EGLE), which I featured in Aug. 16's " 5 Stocks Poised for Breakouts" at $3.75 a share. I mentioned in that piece that shares of EGLE had been trending sideways inside of a consolidation pattern over the last few months, with shares moving between $3.10 on the downside and $4.39 on the upside. Shares of EGLE were just starting to bounce off its 50-day moving average and were quickly moving within range of triggering a breakout trade above resistance at $4.08 to $4.39 a share.
5 Stocks Setting Up to Break Out
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts