正文

breeak out

(2007-08-27 14:34:19) 下一个
再转一篇关于breakout的文章 (图) 来源: 章林林 于 05-01-30 12:16:26 [档案] [博客] [旧帖] [转至博客] [给我悄悄话] A breakout is almost self-explanatory. It is the dramatic movement of a stock market trade moving out of its normal trading area. It also has the element of a significant percentage increase in its normal daily trading range. This is usually accompanied by a massive increase in volume. A breakout is usually the result of an unexpected event or surprise result of a company's operations. This can be affected by both internal as well as external factors. A prime example was Invision Technologies, the company that manufactures the luggage scanning machines at airports. 9/11 brought this company to the forefront. The huge move, an extremely large white candle in that stock price, far above its trading range for the prior six months, immediately revealed a definite change of investor sentiment towards this company. Breakouts, revealed using Candlestick analysis, immediately identify the stock market trades that have huge percentage gains potential.Other breakouts are usually caused by new fundamental potentials within a company's product potential. Whatever causes the new investor sentiment in a stock, the resulting candle or candles provide the information needed that would indicate the upside strength of a new move in a stock price. Dynamic Materials Corp., BOOM, is a good illustration of a breakout. Note in the November chart, after trading for four years between $3 and $4 dollars a share, a news item created a new investor perspective on this company. The fact that the white candle, that broke this stock out, closed near the high end of the trading range was an indication that upon this stock doubling in price in one day, investors still felt confident to stay in the stock and not take profits yet.Very rarely is a breakout on strong volume and a huge percentage price move going to immediately fizzle and move back down to the previous normal trading area. However, not all breakouts immediately go up. But an inordinately large percentage do eventually move to much higher ground after the initial breakout. For those investors that have been following the stock picks over the past few years, AVII is one of our long-term holds. That "hold" recommendation was based on the promising future potential of this company’s products. But when will that potential become evident? Seven trading days ago, an announcement about receiving patents created a breakout in AVII. A stock that trades approximately 100,000 to 300,000 shares per day moved up over 100% on over 40 million shares traded. This was a dramatic change of ownership in the stock. The Bearish Harami the following day indicated that there would be some pullback action. Friday’s chart, as can be seen below, formed a Bullish Engulfing signal right at the base of the bullish candle that formed the breakout. The last six days of trading have seen an average of 5 million shares traded each day. The Bullish Engulfing signal reveals that the profit-taking selling may have stopped.The breakout tells us something. There is now a new dynamic in this stock. As with most breakouts, the stock trend has an extremely high probability of moving higher, the first target testing the breakout candle high at approximately $4.20. However, over the longer-term, meaning six weeks and greater, the upside potential could be higher. This is not a specific stock recommendation but it provides some educational background on breakout situations. AVII fits into that category.
[ 打印 ]
阅读 ()评论 (0)
评论
目前还没有任何评论
登录后才可评论.