Today's all about the deals -- all around the country, the leftover turkey is in the fridge, and folks are flocking to shopping centers for the best prices of the year.
There's a much more interesting price story shaping up on Wall Street this afternoon: the S&P 500 is hitting new all-time highs during Black Friday's truncated trading session.
Those new highs in the big index are driving breakouts in some of the biggest stocks on the market this fall. And that means that today's price action could turn into much bigger buying opportunities in the week ahead.
To take advantage of that bullish sentiment, we're turning to the charts for a technical look at five large-cap stocks that are breaking out.
First, a quick note on the technical toolbox we're using here: technical analysis is a study of the market itself. Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions. Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market. And research shows that skilled technical traders can bank gains as much as 90% of the time.
Every week, I take an in-depth look at big names that are telling important technical stories. Here's this week's look at five big stocks to trade.
Leading off the list is $56 billion energy producer EOG Resources (EOG) . EOG has been a major beneficiary from the about-face in energy prices in 2016, rallying more than 36% on a price basis since the calendar flipped to January. Don't worry if you've missed that rally in EOG so far -- this stock looks ready to kick off a second leg higher in the final stretch of the year.
EOG is currently forming an ascending triangle pattern, a bullish continuation setup that's formed by horizontal resistance up above shares at $97.50, and uptrending support to the downside. Basically, as EOG pinballs between those two technically significant price levels, it's been getting squeezed closer and closer to a breakout through that $97.50 price ceiling. When that happens, EOG will be back in breakout mode, and it's time to be a buyer.
The side-indicator to watch in EOG Resources is relative strength, the line down at the bottom of the stock chart. EOG's relative strength line has been in an uptrend of its own stretching back to January, signaling that this stock continues to outperform the broad market, even now. Shares are within striking distance of their $97.50 breakout level this week. Keep a close eye on this trade.