Breakouts and breakdown are fascinating. There is a huge amount of profits to be made in one gets the direction right.
In our section “breakout / breakdown”, we focus on getting fascinating charts which show how assets have arrived at an important “break point”. Currently, we see two extraordinary interesting charts: Apple and Horizon Pharma.
First, Apple is trading a secular support, going back 3 years. Note on the chart how many times Apple touched this support level. The more touchpoints, the more important a trendline. It goes without saying that a break below this support line will have huge consequences. So far, Apple is not showing signs of breaking down, so this could be a buy (with a tight stop loss).
Horizon Pharma is another stock with a fascinating chart setup. Note how a textbook example of triangle pattern is unfolding. Watch $16 for a breakout which could push the stock sharply higher, at least if the Health sector pushed higher as well.
As always, a breakout or breakdown should be evaluated against the performance of the sector.