Where a stock has come from is very important when considering buying a “BREAKOUT”. The probabilities of a stock moving higher after being up 5,6,7-days in a row before are slim. The context of the “breakout” is important. You shouldn’t buy a breakout just because it eclipsed a previous high especially if the stock made a big move just prior to breaking out. Sure, every so often the market will reward chasing but more often than not you are going to catch some heat first before getting paid if you buy “breakouts” in stocks that are already extended.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at email@example.com or 646-480-7463.
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This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
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