Four Breakout Stocks to Watch
Companies / Investing 2019 Jan 18, 2019 - 10:09 AM GMTHere are four stocks from a range of industries breaking out primarily on news, continuing strong technical trends off December lows.
Attunity Ltd. (ATTU) surged $1.48 to $23.39 on 709,200 shares Wednesday on more than double its average volume. The move came ahead of the data management software company's announcement today that it will release its quarterly and annual financial results on January 31. The move positioned the stock right up against a triple top going back to November. The stock's On-Balance Volume indicator is making new highs ahead of price, a positive sign. A break through here could lead to $28 next.
Mercer International Inc. (MERC) popped $2.22 to $13.95 on 3.1 million shares Wednesday, about 10 times its average volume. The move followed news that the maker of bleached softwood kraft pulp used in paper products and biofuel will replace Green Dot (GDOT) on the S&P SmallCap 600 index before the market opens this Friday. The stock's very sharply declining channel from October was broken a week ago, as it's been steadily ascending from December lows below $10 before gapping up hugely on Wednesday. The stock could back and fill from here, with support at about $13 and resistance up around $15.50 our next target.
Scientific Games Corporation (SGMS) jumped $1.79 to $22.78 on 2.4 million shares Wednesday. On Monday the company announced an agreement to deliver its lottery technology to Germany's Lotto Brandenburg. The stock recently broke out of a six-month down-channel. It has been steadily rising from its late December lows below $15, and flagging near lateral resistance in recent sessions before Wednesday's 8.5% breakout. There's secondary resistance just ahead, and the stock could pull back and consolidate first, but appears headed toward $27, the spike high from November.
Thor Industries, Inc. (THO) gained $2.46 to $64.19 on big volume of 1.5 million shares Wednesday. The move came on no news from the recreational vehicle company. The stock has been rallying off its December lows, and broke its declining tops line early this week. Wednesday's move, with an intraday high of $64.76, tested resistance from early December near $65. A move through there could lead to $70.
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