BreakOut Alert Update: This Stock is Now Extended (+10%)

PacWest Bancorp (PACW – Nasdaq)

Operates as the holding company for Pacific Western Bank which provides commercial banking products and services.

This selection was first featured in the Stock WatchList: Morning Update on 11/1.

PACW clearly broke out on Wednesday (11/9) as shares closed up +7% while trading twice the normal volume. We had some solid follow-through action on Thursday with continued volume-backed gains of another +4.6%. Shares then added another +2.0% on Friday.

For those who did not sell and lock in a +10% / 3-day profit – any above average volume declines from these extended levels would be the first thing to watch out for.

You can put your first support at the highs of the previous base, and the coinciding downward trendline (thick blue line) near $44.00.

SYMBOL
PROFIT
/LOSS
ADDED TO
WATCH LIST
BREAKOUT
DATE
BREAKOUT
PRICE
PACW +10.26% 11-01-16 11-09-16 $44.34

pacw

Chart courtesy of stockcharts.com 

As regular reader know, early each market morning I diligently screen through hundreds of high EPS and RS ranked stocks that have solid fundamentals.

I am looking for those select few that are setting up in bullish technical bases and which looked poised to breakout that day. Just as PACW was doing back on 11/1.

The buy candidates that I find are then assigned their own specific trading criteria such as a Trigger Price and Max Buy Price and then each is listed in my – Stock WatchList: Morning Update and emailed out to subscribers, before the market opens for trading.

You can now receive a free copy of my Stock WatchList: Morning Update report – a concise watch list of high EPS and RS ranked stocks right in your email inbox.

LEARN MORE HERE

 

Any questions or concerns, please email me at james@jamestaulman.com.