Bank It or Tank It: Three Major Stock Breakouts to Watch
Our Bank It or Tank It stocks are all seeing breakouts.
One stock is up 15% since late May…
Another is up 12%…
And one more also posted a 15% gain in even less time…
Have you been following along?
Let me back up.
Since we started True Options Masters about a month ago, I’ve been sharing my Bank It or Tank It videos with you on Thursdays.
And for good reason.
In this series, I cover stocks that people request in the comments of my YouTube channel.
I read the chart’s price action, and maybe do some quick and dirty fundamentals analysis…
Then I tell you whether or not you can bank on them going higher… Or if they’re set to tank lower.
Lately, many of these stocks have been breaking out of the simple patterns I show off in my videos.
Here’s what’s bothering me, though…
Many traders see a stock breakout and assume they missed the trade. They take it as a sign that they’re “too late.” I see this attitude all the time in my video comments.
But that’s simply not the case…
I actually love trading stocks that break out. They’re often the most likely to head higher.
It’s a classic case of momentum. If a stock is on the move, it’s probably not about to stop anytime soon. Those breakouts are juicy when you capture them, but that’s rare. It’s more dependable to use breakouts as signals of much higher gains to come.
And today I’ll show you one stock in this exact situation.
But first, I want to look back at some of my previous Bank It calls, and see how they got where they are today…
3 “Bank It” Breakouts, 3 Opportunities to Profit
Peloton (NASDAQ: PTON) was a popular stock for my video series.
I did a full-blown analysis on the stock on May 27. Based on its questionable financials and bearish chart pattern at the time, I had to put it on my Tank It list…
But Peloton surprised me. After its breakdown from the head-and-shoulders pattern I showed here, it reversed and closed above the neckline — a bullish sign.
Watching the price action, I immediately flipped from bearish to bullish.
And since I added PTON to my Bank It list on June 3, the stock is up 15%.
This shows how you can use these videos to trade stocks…
Advanced Micro Devices (NASDAQ: AMD) is another great example.
In the same video I flipped bullish on PTON, I noted AMD was trading in a crystal-clear triangle pattern. I said to look for a breakout to the upside and added it to my Bank It list on June 3.
Since then, shares have rallied 12%. And you can see the clear breakout point that helped propel the stock higher.
eGain Corp. (NASDAQ: EGAN) was another great one. This stock had already broken out of a downward price channel when I added it to my Bank It list back on May 19.
But it was still trading in a very common chart pattern — a breakout then retest. Those are usually followed by another breakout.
That’s exactly what played out. After adding it to my Bank It list, the stock has jumped as much as 15% in just two months.
And that brings us to our newest must-watch breakout stock — Marathon Oil Corporation (NYSE: MRO).
A Bullish Setup in Oil Stocks
MRO is unique in the fact it had a clear breakout, but has not continued higher since then.
The stock surged 15% on June 1 after the Organization for the Petroleum Exporting Countries (OPEC) agreed to increase oil production.
During normal times, that’s bearish news for oil-related stocks. But due to the pandemic crushing oil demand over the last year, the industry saw this as a sign that demand was coming back full-force.
And that’s bullish for oil stocks such as MRO.
Let’s take a look at the chart…
The stock surged 15% in a single day on the OPEC news — clearly breaking out to the upside. Since then, the stock has essentially gone nowhere.
The red and green wedge pattern was what I highlighted back in May when I added it to my Bank It list.
With shares consolidating now, it looks like it is building up for another sharp breakout. That’s why I’m keeping the stock on my Bank It list as long as it holds above that bright green support line on the chart.
That’s the new level to watch, with the orange line at the top being the key resistance point.
Together, it shows the clear sideways price channel the stock is stuck in at the moment.
Shares will see another breakout, though. And I’d be willing to bet this one heads to the upside once again.
Now, It’s Your Turn…
Now that you’ve seen the types of analysis I run on these stocks and how helpful it can be, I want you to share your top stocks with me.
It could be a popular stock such as AAPL or TSLA… One you’re personally interested in… Even one that just baffles you.
Chad Shoop, CMT
Editor, Quick Hit Profits
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Chart of the Day:
A Major Earnings Breakout
By Mike Merson, Managing Editor, True Options Masters
Speaking of breakouts…
Today we’re looking at a chart of PepsiCo (NASDAQ: PEP), which is in the midst of a major weekly breakout on the back of its Tuesday earnings report.
After spending May testing the upper resistance line that’s been forming since the COVID-19 crash, PEP smashed through it this week on a positive earnings report. It’s trading at all-time highs, and looks like it has plenty of room to run.
Remember what Chad said today… Stock breakouts are a sign to buy, not a sign that you missed the move…
PEP might come down to retest the former resistance line at around $150. That would make for a good entry for a call option trade to play the bounce. But in general, you should bank on the positive trend in PEP to continue.
PEP happens to be one of Chad’s many earnings targets in his Quick Hit Profits trading advisory.
In fact, three of the stocks on Chad’s Winning 75 list — a handpicked group of stocks with the strongest post-earnings trends in the market — are reporting earnings tomorrow. I have no doubt Chad will be firing out big trade opportunities on these stocks, and many others, as we continue throughout earnings season.
Managing Editor, True Options Masters
Investing has consumed my life since college. While double majoring in finance and economics at the University of North Carolina at Greensboro, I founded the university’s economics club, joined the finance club and participated in the Chartered Financial Analyst research competition to represent our school.