Channel Breakout: Stock Candidates

Last week we looked at a recipe to profit from breakouts in channeling patterns. On Friday, I said that I'd rustle up some potential candidates for this strategy to add to your watch list. If you're playing recipe #3 on channeling stocks, you can also add these to that list as well.

I've divided the table below into four sections.

The first section deals with stocks that have just broken out of their consolidation pattern in the past day or so. You can still play them. (See Recipe #15 for strategy details.)

The second section is comprised of stocks that are on the verge of breaking out. Watch these closely.

The third section holds stocks that are currently channeling.

The last section is for illustration purposes to show you stocks that have broken out in the past couple of weeks.





















Points to Note:

1. Some of these stocks have major support levels below their channeling support (the lower level), so please make a note of them. You may wish to hold off on entering a trade until they either break through or bounce off those levels. This comment particularly applies to ANW, DTV, ROP, and BRCM.

2. The market is now in a downward spiral, and attempts to play breakouts to the long side may not work out as intended. The higher percentage play is to play those to the downside, which is where the majority are headed for anyway.

Good luck!