This Week’s BreakOut Update
“Stock WatchList: Morning Update”
– James F. Taulman, former Editor-in-Chief of the first independently licensed website to offer stock reports and services based on the CAN SLIM® investment system.
The BreakOut(s) below first appeared in our…
Stock WatchList: Morning Update
NOTE: Before each market open we deliver our watch list of hand-selected, high-ranked stocks with specific buying criteria, know as our “Stock WatchList: Morning Update”. Then, throughout the trading day, we issue BreakOut Alerts via email and text message for any stocks from that watch list which trade above their posted TRIGGER PRICE.
Below is every stock from the daily morning watch list which broke out above their TRIGGER PRICE this past week.
This past week we had 5 breakouts from our weekly watch list of 6 stocks.
Here is an update on all of this week’s breakouts.
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAKOUT DATE |
MAX BUY PRICE | CURRENT % GAIN/ LOSS |
| MPW | $18.54 | 3/17/19 | $18.70 | 3/21/19 | $19.64 | -0.86% |
| SBUX | $71.96 | 3/17/19 | $72.28 | 3/20/19 | $75.89 | -0.44% |
| GIB | $67.45 | 3/7/19 | $68.27 | 3/19/19 | $71.68 | -1.20% |
| WING | $72.36 | 2/27/19 | $72.32 | 3/19/19 | $75.94 | 0.06% |
| NICE | $117.00 | 3/17/19 | $119.35 | 3/18/19 | $125.32 | -1.97% |
Major Averages and Recent BreakOuts Negatively Reverse
This past week we had 5 breakouts from our Stock WatchList: Morning Update.
Here is an update on all of last week’s breakouts.
1 – Medical Properties Trust, Inc. (MPW -NYSE)
This is our most recent breakout as shares cleared their TRIGGER PRICE of $18.70 mid-session, Thursday.
The stock continued trading above there until about mid-day Friday when it struggled along with the broader market (Dow -400).
This breakout closed that day at the session lows, just under the TRIGGER PRICE, as volume was lighter the average.
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| MPW | $18.54 | 3/17/19 | $18.70 | 3/21/19 | $19.64 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $18.50 | 50 DMA ($17.74) |
$17.06 | -0.86% |
Shares now are basically at our 1st SUPPORT of the previous lows as of Friday’s close.
We also have near-coinciding support of the 50-day moving average, currently at $17.94.
A break below there would be a serious technical violation and a SELL signal.
2 –Starbucks Corporation (SBUX – Nasdaq)
This leader had been featured several times over the past months as it was first published in our special report on Oct., 14th – “High-Ranked Pullbacks to Support”.
On Jan., 20th it was added to our TrendLine SetUps WatchList where it broke out the following day, before getting in a solid uptrend to new all-time highs.
Shares then consolidated there, above $70, and built another base to buy off of. This stock was then added to the Technical SetUps WatchList, where it broke out on Wednesday.
However, it only traded above the TRIGGER PRICE of $72.28 very briefly that day (<5 mins).
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| SBUX | $71.96 | 3/17/19 | $72.28 | 3/20/19 | $75.89 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| 50 DMA ($68.79) |
N/A | $66.20 | -0.44% |
This breakout (like many this week) did close its breakout day well off of the session highs.
Shares did manage to trade back above their TRIGGER PRICE Thursday afternoon, and again briefly mid-day Friday.
SBUX is holding up relatively well, and it is now trading in a nascent uptrend staring with the lows on 3/8.
Considering our 1st SUPPORT is ~4% below Friday’s close, any above average volume declines with a break below that upward trendline would be a cause for some concern, especially if the broader market can not negate the recent bearish action.
3 – CGI Inc (GIB – NYSE)
This breakout only briefly traded above its TRIGGER PRICE of $68.27 near the open on Tuesday’s trading.
Then ths stock went on to negatively reverse the breakout day as it closed with a loss.
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| GIB | $67.45 | 3/7/19 | $68.27 | 3/19/19 | $71.68 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| 50 DMA ($66.37) |
$65.00 | $62.05 | -1.20% |
There may be some initial areas of support at most recent lows, and the coinciding round-$67. At the least, this would be a key area to watch, on the downside.
Interested investors could still add this stock to their watch list, with the current TRIGGER PRICE of $68.27.
With that being said, I am putting our official 1st SUPPORT at the 50-day moving average, currently at $66.37.
Barring a new breakout, this stock looks likely to test there eventually.
4 – Wingstop Inc. (WING – Nasdaq)
This leader nearly broke out on Monday as price progress that day was rather ideal with shares basically making a steady climb, then closing the breakout day near the highs, yet missed making our TRIGGER PRICE by <.20 cents.
The stock then did officially trade above its posted TRIGGER PRICE of $72.32 very briefly on Tuesday.
Like several others, shares closed the breakout day lower.
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| WING | $72.36 | 2/27/19 | $72.32 | 3/19/19 | $75.94 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| $71.00 | 50 DMA ($67.86) |
$66.57 | +0.06% |
The stock managed to climb higher throughout the week until hitting its peak Friday morning, before pulling back and closing the week just slightly above the TRIGGER PRICE.
Going forward, a break below the stock’s upward trendline would be the first concern.
There is some support near $71, then below there is the 50-day moving average, currently at $67.93, if things were to get that ugly.
5 – Nice Ltd (NICE – Nasdaq)
This was one of the few, if not the only breakout we’ve had recently with any real increase in volume.
Shares gapped open on Monday morning and traded above their TRIGGER PRICE of $119.35 while volume was +62% above normal.
| SYM | LAST | ADDED TO WATCH LIST |
BREAK OUT PRICE |
BREAK OUT DATE |
MAX BUY PRICE |
| NICE | $117.00 | 3/17/19 | $119.35 | 3/18/19 | $125.32 |
Chart services courtesy of stockcharts.com. Annotations by James Taulman.
| 1st SUPPORT | 2nd SUPPORT | MAX STOP LOSS GUIDE | CURRENT % GAIN/LOSS |
| 50 DMA ($112.78) |
200 DMA ($110.75) |
$107.64 | -1.97% |
The following day shares did pull back slightly, yet volume was half the regular rate, and this action was not too much of a concern.
Shares continued to modestly drift lower through mid-week, until Friday when there was a (non-news) gap down as volume remained below average.
An eclipse of Friday’s low would be a serious concern as there is no real support until the 50-day moving average, which is currently at $112.78.
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WATCH LIST UPDATE: We now have a total of 5 stocks which we will be watching for a traditional breakout to new highs this coming week.