Wayfair (W) New Stage 2 Breakout BuyWayfair is the kind of stock you can make a lot of money on by catching the early move. It has household name recognition, trends well, follows the traditional growth stock stages, and is both large enough to attract institutional investors while still being small enough to deliver triple-digit gains. In 2020, for example, shares surged 1,500% in just over five months.
A quick look at a longer-term chart and you will see what I mean.
The stage analysis above highlights the 4 stages of the stock cycle. This is based on the work of Richard Wyckoff and Stan Weinstein - both legends of the industry. A stock entering a new Stage 2 uptrend is at the ideal buy point. When timed correctly, these can lead to extraordinary gains with limited downside risk.
The line in the sand for W is at $75 per share. This is the pivot point, the breakout trigger, key resistance... whatever you want to call it. In the weekly chart below you can see the significance of this level.
It served as short-term support on the way down and then became resistance which has held the stock back for over a year. In my opinion, the move above this level last month was a failed breakout in a weak market. This is not a reason to pass on the second attempt.
W has consolidated nicely on a series of shallowing retracements and its 10, 21, and 50-day moving averages merging to offer support at today's price.
One other catalyst... Overstock.com (which Wayfair also owns) plans to re-brand to something even more recognizable - Bed, Bath & Beyond. It bought the name, domain, and loyalty program assets on the cheap when the company went into bankruptcy a few months ago. This re-brand could be the fresh start the company needs to jumpstart sales growth and trigger a new Stage 2 uptrend in the stock.
A move above $75 would confirm the move, and that is where I will look to buy.
Breakouttrade
Again showing speed #baaofbreakoutEntry CMP
Stop loss 122
Breakout trading implementation:
1. **Identifying New Trends:** Breakout trading helps traders identify the beginning of new trends by focusing on price levels where an asset breaks out of its historical trading range.
2. **Volatility Indicator:** Breakouts often occur when there's increased volatility in the market. Monitoring breakouts can provide insights into shifts in market sentiment and potential price movements.
3. **Entry Points:** Breakout points serve as potential entry points for traders looking to ride the momentum of a newly established trend. Buying on a breakout can capture the early stages of a price movement.
4. **Confirmation of Strength:** Successful breakouts indicate the strength of a trend. If an asset breaks out with high volume and follows through with sustained price movement, it suggests a strong trend in that direction.
5. **Avoiding False Signals:** Breakout strategies often include using indicators or confirmation signals to avoid false breakouts. This can enhance the accuracy of trade decisions.
6. **Defined Risk and Reward:** Breakout trading allows for setting clear stop-loss levels below the breakout point, which helps manage risk. Traders can also calculate potential profits based on the distance between the breakout point and a projected target.
7. **Adaptable to Various Markets:** Breakout trading can be applied to various markets, including stocks, forex, commodities, and cryptocurrencies. The concept remains consistent across different assets.
8. **Flexibility:** Traders can adapt breakout strategies to their preferred timeframes, whether they are day traders, swing traders, or long-term investors.
9. **Liquidity Opportunities:** Breakout points are often associated with increased trading volume, which can provide better liquidity for executing trades.
10. **Risk vs. Reward Assessment:** Traders can evaluate the potential risk of a trade (stop-loss) against the potential reward (target price), aiding in decision-making and portfolio management.
11. **Psychological Advantage:** Successful breakout trades can boost a trader's confidence and discipline, reinforcing the effectiveness of their strategy.
12. **Market Events:** Breakouts can occur around significant market events such as earnings reports, economic data releases, or geopolitical developments, offering traders opportunities to capitalize on sudden price movements.
Remember, while breakout trading offers potential advantages, it also carries risks. False breakouts and market reversals can lead to losses. Successful implementation requires a solid understanding of technical analysis, risk management, and the ability to adapt to changing market conditions.
SuryarosniStock have strength and good fundamentals
Qtr sales up by 2%
Qtr net profit up 168%
Qtr EPS up by 167 %
Entry level----816
stop loss ------728
Breakout trading implementation:
1. **Identifying New Trends:** Breakout trading helps traders identify the beginning of new trends by focusing on price levels where an asset breaks out of its historical trading range.
2. **Volatility Indicator:** Breakouts often occur when there's increased volatility in the market. Monitoring breakouts can provide insights into shifts in market sentiment and potential price movements.
3. **Entry Points:** Breakout points serve as potential entry points for traders looking to ride the momentum of a newly established trend. Buying on a breakout can capture the early stages of a price movement.
4. **Confirmation of Strength:** Successful breakouts indicate the strength of a trend. If an asset breaks out with high volume and follows through with sustained price movement, it suggests a strong trend in that direction.
5. **Avoiding False Signals:** Breakout strategies often include using indicators or confirmation signals to avoid false breakouts. This can enhance the accuracy of trade decisions.
6. **Defined Risk and Reward:** Breakout trading allows for setting clear stop-loss levels below the breakout point, which helps manage risk. Traders can also calculate potential profits based on the distance between the breakout point and a projected target.
7. **Adaptable to Various Markets:** Breakout trading can be applied to various markets, including stocks, forex, commodities, and cryptocurrencies. The concept remains consistent across different assets.
8. **Flexibility:** Traders can adapt breakout strategies to their preferred timeframes, whether they are day traders, swing traders, or long-term investors.
9. **Liquidity Opportunities:** Breakout points are often associated with increased trading volume, which can provide better liquidity for executing trades.
10. **Risk vs. Reward Assessment:** Traders can evaluate the potential risk of a trade (stop-loss) against the potential reward (target price), aiding in decision-making and portfolio management.
11. **Psychological Advantage:** Successful breakout trades can boost a trader's confidence and discipline, reinforcing the effectiveness of their strategy.
12. **Market Events:** Breakouts can occur around significant market events such as earnings reports, economic data releases, or geopolitical developments, offering traders opportunities to capitalize on sudden price movements.
Remember, while breakout trading offers potential advantages, it also carries risks. False breakouts and market reversals can lead to losses. Successful implementation requires a solid understanding of technical analysis, risk management, and the ability to adapt to changing market conditions.
Sapphire Foods India Ltd - Breakout StockAnother Breakout stock that came on my radar is Sapphire Foods India Ltd
This stock has been consolidating in a range since its listing.
The consolidation is happening in an ascending triangle.
Currently, the stock is trading near the resistance in a small range of approx 12 % from the past 9 weeks, suggesting there's is a high chance of a breakout this time.
And if the breakout happens the consolidating range would replicate on the upside and we can see the stock moving towards 2000 levels in the coming months.
HPAL Ready For Breakout HP ADHESIVES is a stock that can be another great positional pick considering the great risk-reward ratio it is offering right now.
The reason I picked this stock is that, it has been consolidating for the past 8 weeks in a tight range of approx 8-10%.
And this consolidation is happening at previous resistance around 410-460 levels, where the stock took resistance multiple times in the past.
Price Resistance
First in Jan 2022
Second on April 22
Third on Sep 22
And this time from June 22
By looking at price action, the breakout looks inevitable on the charts and stock can move fast towards 500 to 560 levels in the coming weeks which would constitute approx 20-23% return in a short span of a few weeks.
Breakout trade in SHOPShopify needs no introduction. If you bought something online from anywhere other than Amazon, the sale probably ran through Shopify.
The stock is up 175% since October and proving to be a market leader.
The recent action shows shallowing retracements on declining volume – a textbook breakout pattern or "VCP Pattern" as described by Mark Minervini
I would consider buying on a move above $66.60 with a stop loss at $61.00 to risk roughly 8% on the trade.
Breakout Trade in FROGJFrog is a supply chain software company out of California.
This mid-cap stock formed a base over the last twelve months and is now trying to break out on above average volume.
The run up from $17 to $28 took place on good volume, so this looks like accumulation on the institutional side.
I think this is buyable here. A couple weeks of tight price action near the $28 level to absorb overhead supply would make this trade even more appealing.
$LCID Wedge Setup - Potential Breakout Ahead! 📉📈Hello traders! 🌟📊 I want to bring your attention to an interesting technical pattern I've spotted on $LCID. It appears to be forming a wedge pattern, suggesting a potential breakout opportunity. Let's take a closer look at the details! 💡📉📈
🔍 Symbol: NASDAQ:LCID
📅 Timeframe: Weekly
📌 Wedge Formation:
NASDAQ:LCID has been consolidating within a narrowing range, forming a wedge pattern. This pattern is characterized by converging trend lines, with the upper trend line sloping downward and the lower trend line sloping upward. The tightening price action indicates diminishing volatility, typically preceding a significant breakout move.
📈 Breakout Confirmation:
To validate the wedge pattern, we'll need to see a clear breakout above the upper trend line. This breakout should ideally be accompanied by an increase in volume, indicating strong buying interest. Keep a close eye on as a potential breakout point. A decisive move above this level could signal a bullish breakout.
🎯 Price Targets:
If the breakout occurs, we can project potential price targets based on the height of the wedge pattern. Measure the distance from the starting point of the wedge to the upper trend line and add it to the breakout level. Consider as potential price objectives to keep an eye on.
⚠️ Risk Management:
Remember to implement appropriate risk management strategies. Placing a stop-loss order below the lower trend line or at a level that aligns with your risk tolerance can help protect your capital in case the breakout fails and price reverses.
As always, conduct thorough research and consider additional factors such as market conditions, news events, and overall trend analysis before making any trading decisions.
📊 Hashtags: #LCID #WedgePattern #BreakoutOpportunity #TechnicalAnalysis #TradingView
Please note that this analysis is based on technical analysis principles and should be used as a starting point for your own research. Market conditions can change rapidly, so stay vigilant and adapt your trading strategy accordingly.
Happy trading! 🚀💰
Disclaimer: This content is not financial advice. Trading carries risks, and it's important to only trade with funds you can afford to lose. Seek advice from a qualified financial professional before making any investment decisions.
Long Trade in DNUTWho makes the best donuts on Earth? Don’t you dare say Dunkin’. Krispy Kreme is king, and I won’t hear anything to the contrary.
Regardless of who makes your favorite cream-filled pastry, take a look at the weekly chart of DNUT above.
This setup is fairly straight forward. The stock has not been able to breach the $16 level despite several attempts over the last six months. A close above $16, especially on above average volume, would be my trigger to buy.
DNUT is beginning a new Stage 2 uptrend here, and buying the first breakout of the second stage can often lead to a multi-month run. As a longer-term trade, I would consider risking up to 15% on it.
If it plays out as expected, DNUT should make new all-time highs.
Long Trade in MUMicron is a semiconductor stock riding some of the momentum from yesterday’s earnings beat at Nvidia.
Notice the textbook breakout pattern that has formed over the last three months – a series of shallowing retracements with resistance at $64.
The 200-day moving average is finally turning up and other MA's are properly stacked and trending higher.
This is the first breakout into a new Stage 2 uptrend which is exactly where I like to buy. Look to build a position in the mid $60s if possible.
The trade sours if it closes below its 50-day moving average (red line on chart) which is currently around $62 and rising.
IOC could burst into an upward move.IOC has formed a bullish structure on the weekly chart. A crucial aspect is a weekly RSI close above 60. It is also about to break out from a down trending line. A long position could be considered keeping the following levels in mind:
LONG ABOVE: 81.55
STOP LOSS: 77.95
TARGET 1: 85.15
TARGET 2: 88.75
Please do wait for at least a 15 min candle close above the "LONG ABOVE " level before initiating the trade.
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Long Trade in FNKOFunko took a beating in last year’s bear market, but the stock is quickly coming back to life.
FNKO surged on earnings last week and has given back almost none of the initial move.
Shares are barely retracing and doing so on minimal volume – a sign that no one is selling.
This trade is pretty simple – draw a trend line and buy when it breaks above it. I forgot to publish this on Friday, but Monday's action is pretty much exactly what I was hoping to see.
A good breakout should not retrace to the low of this consolidation (currently 10.74), so you could take a stab at this one with very little risk.
Long Trade in ONONOn Holdings, the maker of OnCloud tennis shoes found on soccer moms everywhere, is one of the hottest stocks in the market right now.
It went public in 2021, just in time to get hammered in the bull market.
But shares have come back with a vengeance.
ONON has already doubled this year and is making new all-time highs as I write this.
Notice the textbook consolidation pattern followed by a pocket pivot breakout through resistance. This is healthy action and exactly what we expect from stocks under institutional accumulation.
We have a little time before this one reports earnings. The announcement is scheduled for a week from Tuesday on May 16th before market open. If I had a profit cushion of at least 10%, I’d probably hold this one through the report.
Breakout Trade in VNTVontier is an industrial machinery company setting up in a textbook breakout pattern.
After surging more than 50% off the October lows and reclaiming its 200-day moving average, shares have consolidated in a series of shallowing pullbacks. Retracements have tightened from 11% to 7% to just 4.5% with resistance at 27.50.
Look for a breakout above 27.60 on above average volume as the entry trigger. My stop would be just beneath the swing low at 26.15 to risk 5% on the trade.
Long Trade in DKNGThe leisure gaming group, as a whole, is setting up in a textbook breakout pattern.
Group moves like this can be powerful. The combination of a group move and a similar pattern from an individual stock within that group can lead to a strong advance higher.
DraftKings is breaking out of a clean base in the beginning of a new Stage 2 uptrend.
If you look at a daily chart, you'll see the stock is up 13% this week but running into longer term resistance.
Ideally, DKNG would consolidate for a few days in the HKEX:21 - HKEX:22 range to absorb any supply from sellers looking to exit near 52-week highs.
There are 2 places I would consider buying this stock…
First would be a breakout to new highs above HKEX:22 on above average volume. This would signal to me that funds are still buying heavy, and I would want to be along for the ride.
The other potential buy point would be a pullback into the moving averages and this week’s breakout area.
At HKEX:19 - HKEX:20 a share, I would be a buyer in DKNG with a sell stop just beneath the 50-day moving average.
Long Trade in IGTThe leisure gaming group, as a whole, is setting up in a textbook breakout pattern.
Group moves like this can be powerful. The combination of a group move and a similar pattern from an individual stock within that group can lead to a strong advance higher.
IGT stock just made new 52-week highs.
After a shakeout move in mid-March, the stock completed a textbook cup-with-handle pattern and broke out through resistance at $27.
The 200-day moving average has turned up, and all other key moving averages are trending higher and supporting the stock.
Depending on one’s risk tolerance, IGT could be bought here.
My stop would be at 25.75, just below the 50-day moving average and the recent swing low. That would equate to a risk of 8.4% on the trade.
If IGT pulls back to the HKEX:27 area, that would be a great place for a pullback buy or to add on to the position.
Long Trade in EXASExact Sciences is a biotech stock showing high relative strength.
Following a 50% jump in January, the stock is tightening with pullbacks getting shallower from left to right.
This is a sign of seller digestion which we often see before a new breakout to the upside.
EXAS is also finding support at key moving averages which appear to be holding up the stock.
I would consider buying on a breakout above $69.