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3 Stocks Looking to Break Out - views
MILWAUKEE (Stockpickr) -- Breakout trading is one of the most popular technical analysis trading techniques, helping day traders and swing traders rake in massive profits. A breakout occurs when a stock takes out prior overhead resistance. Once it does that, the stock is free to find new buyers and momentum players who can push the stock higher. If a stock can break out above past resistance levels and hold above the breakout price, it can easily trend significantly higher.
With that in mind, here are a few stocks setting up to break out and trade higher.
LinnCo (LNCO) focuses on the development and acquisition of oil and natural gas properties in the U.S. The stock began trading on the Nasdaq only six months ago. Since this a newer stock, it literally has nothing but clean air above this resistance area. As you can see by the daily chart, the stock has topped out twice already at its current level and is pushing up for a third time. With no resistance overhead, a breakout of previous highs of $40.40 could yield a significant return over time.
Angie's List (ANGI) operates a consumer-driven solution for its members to research, hire, rate and review local professionals for home, health care and automotive service needs. This stock has hit the $20.30 area a few times, passing it once but not holding above that level for the day. A strong bullish breakout will have ANGI breaking above $20.30 and closing the day above that price.
My last breakout stock to watch for is NetSol Technologies (NTWK). NetSol Technologies designs, develops, markets and exports software products primarily to the automobile finance and leasing, banking, health care and financial services industries worldwide. It also provides system integration, consulting and IT products and services. The stock twice topped out at $14 and is looking to retest that area of resistance in the future. Set an alert around $13.80 for this one. Given the lower float in this stock, you may want to watch how it trades before it tests $14 again.
-- Written by Andrew Anger in Milwaukee.
At the time of publication, author had no positions in stocks mentioned.
Andrew Anger, based out of Milwaukee, is a proprietary trader, focused on technical analysis in small- to large-cap stocks. He graduated in 2012 from Saint Mary's University of Minnesota with degrees in marketing and entrepreneurship. You can follow him on twitter @angertrader.