Well, it happened. Without much fanfare, U.S. market averages managed to set some major records yesterday, as the S&P 500, Dow Jones Industrial Average, Nasdaq Composite and Russell 2000 all managed to close at all-time highs Monday.
Not a bad start to the short holiday week.
But the biggest upside could be yet to come. You see, as the broad market averages set new high water marks for November, a large number of individual stocks are teetering on the verge of breakout territory. Put simply, those individual stock setups are where investors are going to find the largest moves for their portfolios.
To take advantage of that bullish trajectory for stocks, we're turning to the charts for a technical look at five big-name breakouts to buy this week.
In case you're unfamiliar with technical analysis, here's the executive summary: Technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.
Without further ado, here's a rundown of five technical setups that are showing solid upside potential right now.
Berry Plastics Group
Leading off our list of potential breakouts is Berry Plastics Group (BERY) . Berry Plastics has been enjoying some stellar price action so far in 2016, up more than 27% since the calendar flipped to January, and outperforming the S&P 500 by almost a factor of four. Don't worry if you've missed that rally, though. Berry looks ready to kick off a second leg higher this Thanksgiving. Here's how to trade it:
Berry Plastics is currently forming an ascending triangle pattern, a bullish price setup that's been coming together in shares since the middle of August. The ascending triangle is a continuation setup that's formed by horizontal resistance up above shares at $46, with uptrending support to the downside. Basically, as BERY has bounced in between those two technically-significant price levels, it's been getting squeezed closer and closer to a breakout above that $46 price ceiling. A material breakout above $46 is our buy signal for this stock.
While shares closed a couple of cents above the $46 level yesterday, the move isn't quite enough to call the breakout confirmed - we've been here before several times over the course of the pattern. Some continuation in today's trading session would be enough to push BERY over the edge, though.
Relative strength, down at the bottom of BERY's price chart, is the additional piece of evidence for the breakout that investors should be paying attention to here. Our relative strength line, which measures this stock's outperformance versus the rest of the broad market, has been in a well-defined uptrend since March - as long as that uptrend in relative strength remains intact, BERY is statistically more likely than not to keep on outperforming.