Weekly breakouts
Stocks which have reached/ crossed the pivot point on the weekly charts. Evaluated after closing on ...
What are Weekly Breakout Stocks?
Weekly breakout stocks mean those equity shares that have experienced significant price variation, either positive or negative, in weekly time frames. Weekly breakout stocks are tracked extensively by swing traders to catch an early potential breakout and make profits by trading in these stocks, typically over weekly periods.
- Weekly breakout stocks refer to shares that cross their resistance and support levels in a weekly time frame.
What are 52-week high Breakout Stocks?
52-week high stocks mean those listed shares that have reached their highest price level in the past 1-year or 52-weeks. This price surge indicates that on a particular trading day, a stock has seen increased interest from investors, which leads the stock to a 52-week high price. Investors prefer to trade 52-week high breakout stocks because they provide an indication of strong buying power and possible breakout in the stocks.
52-week high breakout stocks are a great parameter to identify stocks which can experience potential weekly breakouts from their ongoing trend. Hence, traders find them to be interesting opportunities for generating profits from trading.
- 52-week high breakout stocks are those shares that have reached their highest price level in the past 1 year and have moved across or are near their breakout levels.
How to Identify Weekly Breakout Stocks?
Identification of weekly breakout stocks can be executed through tools, indicators and market fundamentals. The points below summarise the key aspects of identifying weekly breakout stocks.
- Key Market Trend - The overall trend in the stock market influences the price movement of stocks extensively. Hence, it is important to keep an eye on the general sentiment of the market to identify weekly breakout stocks.
- Relative Strength - Relative strength refers to the strength according to which the price of a particular stock moves in a direction. Traders track this movement using the Relative Strength Index (RSI), which offers insight into the oversold or overbought status of the stocks. A potential trend reversal can be identified in a weekly time frame by looking at the RSI indicator.
- Volume Confirmation - Only looking at the price movement is not sufficient for identifying weekly breakout stocks. Volume can be a useful tool to get confirmation about a weekly breakout because when a stock moves towards a potential breakout without a significant volume, it might be a false weekly breakout. Thus, a volume confirmation is necessary to successfully identify weekly breakout stocks.
- Industry Trend - In some cases, particular industries tend to showcase exponential growth due to various factors. Thus, traders perform industry analysis to identify stocks that move in sync with the growth of their respective industries. By doing so, they can catch early weekly breakouts in stocks of booming sectors and industries. For example, the EV sector might be suitable for finding weekly breakout stocks because of teh exponential growth potential this industry has.
Key takeaways About Weekly Breakout Stocks
- Weekly breakout stocks are equity shares that have seen a breakout from their current price trend in a weekly trading period.
- 52-week high weekly breakout stocks are those stocks that have reached their 52-week high prices and are nearing or have experienced a weekly breakout.
- Weekly breakout stocks can be identified using tools and technical indicators such as the relative strength index (RSI), golden crossover indicator, stock screeners, and market and industry trends analysis.