After starting the week with a nasty breakdown last Tuesday, stocks closed out with a robust bullish reversal. The turnabout created a veritable buffet of tasty setups for the week ahead. So says my weekend scanning, which discovered breakout stocks galore.
Today’s gallery will highlight three of the top contenders. These guys boast strong long-term uptrends and just recently formed consolidation patterns. The beauty of their recent pauses is that they’ve allowed overbought pressures to ease and new bases to form for the next upswing. Throw it all together and low risk setups are beckoning in today’s trio.
Behold, 3 big-cap breakout stocks that will deliver profits to your portfolio.
3 Big-Cap Breakout Stocks for the Week: Apple Inc (AAPL)
Apple Inc (NASDAQ:AAPL) tops the list with one of the best price patterns it’s seen in months. The herky jerky action of 2018 so far has generated little by way of easy, low-risk entries. Until now, that is.
Apple’s post-earnings pole vault carried shares to record territory, breaching all previous ceilings in the process. Since then we’ve seen very little giveback. A three week high base has formed reflecting the continued demand bidding for AAPL during all minor dips.
Friday’s pop is signaling the next up-leg is upon us. I like buying the July $190/$200 bull call spread for around $4.30 to capitalize. The risk is limited to $4.30 and the reward is $5.70.
3 Big-Cap Breakout Stocks for the Week: Boeing Co (BA)
With last month’s breakout, Boeing Co (NASDAQ:BA) shares are poised to reclaim their prior peak. The price action over the past two quarters has taken on the form of a cup-and-handle pattern which should bode well for its share price moving forward.
The past two weeks of chop are forming the handle of the pattern and could be viewed as a base or flag that is resolving itself to the upside this morning.
With the recent bullish action, the RSI for BA has climbed back above 50. This further validates betting on higher prices.
Buy the July $360/$380 bull call spread for around $8. The max risk is limited to the initial investment and the max reward is $12.
3 Big-Cap Breakout Stocks for the Week: FedEx Corporation (FDX)
FedEx Corporation (NYSE:FDX) rounds us out with a super clean breakout setup. The transportation titan has been stuck in a box for the past five months, unable to depart.
But bulls have slowing been gathering momentum. The series of higher pivot lows forming shows increased aggression beneath the surface. And with another test of resistance fast approaching, I think an upside breakout is simply a matter of time.
To capitalize on the eventual bullish resolution, consider buying the July $260/$270 bull call spread for $3.15. The max loss is limited to $3.15 and the potential gain stands at $6.85.
As of this writing, Tyler Craig held bullish options positions in AAPL. Want more education on how to trade? Check out his trading blog, Tales of a Technician.