Recent Breakouts
Our recent breakout scan returned a few promising stocks in the USA, Canada and Australia but none in the UK. We look for shallow corrections and Trend Index troughs above zero which indicate healthy buying pressure.
Australia
Monadelphous Group Ltd (MND) – Strong breakout above 11.50. Rising Trend Index troughs indicate increased interest from buyers. Expect retracement to test the new support level at 11.50; respect would confirm reversal to an up-trend.
Canada
Headwater Exploration Inc (HWX) – Breakout above 7.50 from a narrow consolidation. Strong up-trend and Trend Index troughs above zero indicate long-term buying pressure. Retracement respecting the new support level at 7.50 would confirm a fresh advance.
Tamarack Valley Energy Ltd (TVE) – Strong breakout above 5.50, with recovery from a shallow trough. Accelerating up-trend and Trend Index troughs at zero indicate long-term buying pressure. Follow-through above 6 is bullish.
Vermilion Energy Inc (VET) – Breakout above 30. Accelerating up-trend and Trend Index troughs above zero indicate increasing buying pressure. Retracement that respects support at 29/30 would confirm a fresh advance.
USA
Atkore Inc (ATKR) – Strong up-trend. Recovering Trend Index indicates improving interest from buyers. Expect retracement to test the new support level at 115; respect, with follow-through above 120, would confirm a fresh advance.
Northrop Grumman Corp (NOC) – Completed an ascending triangle. Strong up-trend. Trend Index troughs above zero indicate LT buying pressure. Follow-through above 500 would be a bullish sign, signaling continuation of the accelerating up-trend.
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
Hat tip to Luke Gromen at FFTT for coining the term "Central Bank Zugzwang".
Zugzwang is a chess term referring to a position where a player has to move, but every possible move puts them in a worse position than they are at present.
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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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