Trend Analysis – 3 Breakout Charts to Consider
I consider myself a “hybrid” trader-investor. I like to hold a mix of longs and shorts. I trade around core positions in my investments, and some of my best investments began as short-term trades. I do both top-down and bottom-up fundamental analysis. And I mix fundamentals with technicals to find the best entry and exit points. In short, I like to have all my financial bases covered.
One of my favorite hybrid approaches to the markets is to start with a screen that filters out stocks trading over $7 per share, over 500,000 shares per day, and that show strong bottom-line growth and top-line value. Oh, and they also need to be profitable, and trading at a steep discount to forward earnings multiples. Running this scan typically gives me about ten stocks to focus on. From there I do trend analysis, momentum analysis, and plot out price patterns and projections. This usually helps me whittle the list down to just a few stocks worthy of trading and/or investing in.
This week my hybrid approach turned up three companies for your consideration. If you want to trade any of these suggestions, I strongly recommend doing your own analysis and setting a reasonable stop-loss on each position to protect against any unforeseen change in investor sentiment. See my analysis below.
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