Introduction
Dear reader,
Here we are again with a bunch of great (potential) breakout setups. A lot of alrge bases has been formed. I won’t take too much of your time, but this one will be worth it.
So without further ado, let’s get started.
$AMSC - American Superconductor is breaking out of its 10+ year accumulation zone! Posting a gain of 45% so far within the month of November! This is the largest jump $ASMC has experienced since May.
The company has provided revenue growth of 60% Y/Y and has posted its first quarter of positive net income in Q3 2024 for the first time since 2018. With the recent boom, the company has seen institutional ownership explode ~100% year-over-year to 27.07 million shares!
With such improvement to fundamentals, this breakout is being driven by large amounts of momentum. Typically after such an explosive move in a short period of time. It is likely that a small drawback will occur. That would lead the stock to back test its breakout. A large spot to have in focus in the event this is seen would be $28 - $30!
Now, it is also true that with such momentum. The stock may easily continue riding higher without presenting a back test. There is no real resistance for $AMSC until $60! Another 75% gain from current levels seems incredibly possible.
$PCT - PureCycle Technologies is currently trading at the highest level since November 2021. Jumping 244% in 2024 now breaking out of its large supply zone that has suppressed the stock for over 2 years. With the breakout, there is a back test occurring right now. With the current view, it seems a continuation higher is going to be set into progress over the next few months! That would lead the stock to likely run toward $18 - $20.
It is beyond crucial $10.50 - $12 is defended by bulls. Or the current move will be a false breakout and lead to a larger move back to the $6 range… however there is a lot more supporting a continuation higher is more likely. But there is always risk that should be taken into consideration when evaluating a stock!
$AFRM - Affirm has seen an explosive rally this year. This comes after the stock formed a massive cup and handle formation. With the breakout occurring in August, leading the stock to explode over 90% since.
The company also posted better than expected results for the third quarter. Leading the stock to break through its supply zone. Putting $AFRM at the highest level since early 2022! The momentum is incredibly strong right now/ There is very little stopping this stock for the foreseeable future. $70 is my next target and this could happen quite quickly.
$RBOT - Vicarious Surgical since 2021 has fallen over 95%. However, there is some hope as we have finally seen the first positive move since inception. With the stock forming a massive falling wedge for over a year leading to a breakout in late October.
It is extremely hard to be certain on where the stock will go from here. But I can say with more certainty that the trend has begun to flip as $RBOT is now trading above its 50 weekly moving average. Something that has not been seen since 2021. There is some slight resistance from $17.50 - $20. So from here, that would be my next target for the stock.
$SBUX - Starbucks has had a tough few years, but there is hope brewing as there was a CEO change. Bringing confidence to investors that Starbucks is still investable. The forward outlook for the company is looking a bit more bright as the company attempts to recover from the slump seen over the past 24 months.
The stock has mostly traded sideways for the past couple years. Testing its demand zone 5 times since 2019! There is still a downtrend in place since the summer 2021 peak. Right now, we are seeing this resistance be tested for the first time since November 2023. This is a spot that needs to be observed closely! A breakout of this long term downtrend would bring $SBUX to trade back over $100+ which has not happened in quite some time! A failure to move higher from here would likely bring a back test of the $90 level.
What will drive the stock much higher from here is if the company can actually deliver and begin to recover. The market is making the bet that a turnaround is likely. For further continuation with confidence. We need to see Starbucks actually provide those results.
Thank You
Thank you for reading. I hope these provided you with some inspiration!
While I promised a Discord channel, I unfortunately have to admit that it is still work in progress. Again, it will be completely free and a great way to talk and discuss charts and other investment ideas with each other.
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Have a fun week trading!