If you're a stock market investor, there's a number you should burn into your mind: it's 112.
That's how many S&P 500 components have officially entered bull market territory in the past six months, rallying 20% or more in that timeframe. Simply put, more than one in five S&P stocks are showing off some stellar outperformance right now.
But don't worry if you've missed out on that spike in stocks; plenty of big stocks are on the verge of new breakout moves this spring.
To figure out which ones look primed to kick off bull market runs of their own from here, we're turning to the charts for a technical look at four that are teetering on the verge of breakout territory ...
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 four technical setups that are showing solid trading potential right now ...
DISH Network Corp.
We're starting simple: with shares of $29 billion satellite TV provider DISH Network Corp. (DISH) . DISH has been showing traders a price setup that's about as simple as they get: shares have been bouncing their way higher in a well-defined uptrend, bouncing their way to 46% gains in the past 12 months. That uptrend is still very much intact as the calendar rolls deeper into April.
DISH Network's uptrend is formed by a pair of parallel trendlines that have done a good job of identifying this stock's high probability range since last summer. Trendline support, in particular, has been inviolate during the course of DISH's uptrend, signaling a low-risk, high-reward buying opportunity on every successive test of the bottom of the price channel. That means, as DISH touches support for the eighth time here, it makes sense to buy the next bounce higher.
Actually waiting for that bounce is important for two key reasons: it's the spot where shares have the most room to move up before they hit resistance, and it's the spot where the risk is the least (because shares have the least room to move lower before the channel breaks, invalidating the upside trade). Remember, all trend lines do eventually break, but by actually waiting for the bounce to happen first, you're ensuring DISH can actually still catch a bid along that line before you put your money on shares.