Comeback tech stock Hewlett-Packard (HPQ) was nearing important resistance right around the $25.30 mark yesterday, and this morning, it briefly broke through it. Should HPQ close above resistance, the stock should just keep on climbing.
And Hewlett-Packard isn’t alone as a potential breakout stock.
While playing breakouts isn’t as easy as it was earlier in the year thanks to the market’s volatility, you still can find strong stocks if you’re careful. A few examples of other stocks forming tight patterns: General Electric (GE), Visa (V) and B/E Aerospace (BEAV).
Plus, even though the market requires traders to be more selective these days, there’s a silver lining: Any reversal signals you to get out right away. Keep an eye on these three names, along with HPQ, and check out the video for more information about trading these and other breakout stocks.
Serge Berger is the head trader and investment strategist for The Steady Trader. Sign up for his free weekly newsletter here. As of this writing, he was long HPQ.