Recent Breakouts
Our recent breakout scan returned a number of promising stocks for review in Australia, Canada, the UK and the USA. We look for shallow corrections and Trend Index troughs above zero which indicate healthy buying pressure.
Australia
Liontown Resources Ltd (LTR) – LT up-trend, testing resistance at 2. Trend Index troughs at zero indicate long-term buying pressure. Follow-through above 2 would signal a fresh advance.
Canada
EcoSynthetix Inc (ECO) – Strong breakout above the recent narrow trading range. Expect retracement to test the new support level at 6; respect would confirm a fresh advance.
E Split Corp (ENS) – Testing resistance at 16. Trend Index holding above zero indicates LT buying pressure. Breakout above 16 would signal another advance, in line with the LT up-trend.
UK
Bunzl Plc (BNZL) – Breakout above 3000 signals another advance in the LT up-trend. Trend Index troughs at zero indicate persistent buying pressure.
United Utilities Group Plc (UU-) – Strong breakout in a LT up-trend. Trend Index trough at zero indicates buying pressure. Retracement respecting the new support level at 1100 would confirm a fresh advance.
USA
Kennedy-Wilson Holdings Inc (KW) – Strong breakout from a shallow trough. Trend Index holding above zero indicates LT buying pressure. Currently retracing to test the new support level at 24; respect would confirm a fresh advance.
Avalonbay Communities (AVB) – Testing resistance at 255 after a shallow trough. Trend Index holding above zero indicates LT buying pressure. Breakout above resistance would signal a fresh advance in the LT up-trend.
Equity Residential (EQR) – Breakout above 91 signals a fresh advance. LT up-trend. Trend Index holding above zero indicates LT buying pressure. Retracement that respects the new support level at 90 would confirm a fresh advance.
Exlservice Holdings (EXLS) – LT up-trend. Recovered from a deep trough with breakout above 145. Follow-through above 150, or retracement that respects support at 145, would confirm a fresh advance.
Steris Corp (STE) – LT up-trend with breakout above 245. Trend Index holding above zero indicates LT interest from buyers. Follow-through above 250 would confirm a fresh advance.
Reminder
The above stocks are selected on the basis of technical analysis and do not consider fundamentals like sales, earnings, debt, etc. Please do your own research. They are not a recommendation to buy or sell.
Quote for the Week
Risk cannot be destroyed, it can only be shifted through time and redistributed in form.
~ Christopher Cole
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Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.
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