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Weekly Breakout Candidates – AKRX, FSNN, MON, PYDS

Weekly Breakout Candidates, 4th Edition

Welcome to the fourth edition of the Weekly Breakout Candidates for which stocks were selected from the NYSE and NASDAQ markets.

Similarly to previous editions we are essentially looking for an array of positive technical indications such as a positive or rising relative strength, significant volumes of exchange, a positive long term trend (as identified by the 30-week moving average), and a potential or realized breakout on the price chart.

As for previous breakout scenarios investors should refrain from anticipating the proposed moves but intervene only when the breakouts get realized, ideally with entry orders to buy in a limited range above the breakout level.

This week’s selection has a few surprising configurations in store that could provide for a few super-winner stocks:

  • AKORN INC.
  • FUSION TELECOM INTERNATIONAL
  • PAYMENT DATA SYSTEMS INC.
  • MONSANTO COMPANY

AKORN, INC. – NASDAQ: AKRX

EDIT on 10 Dec 2017: The reason for AKORN stagnating below the $34 level is the consequence of an approved merger agreement with Fresenius Cabi. We remove AKORN from our list of breakout candidates.

Akorn, Inc.  is a niche pharmaceutical company that develops, manufactures and markets generic and branded prescription pharmaceuticals as well as animal and consumer health products.

2017-09-10_AKRX

AKRON Price Chart

Strategy
– Buy the breakout when the price moves above $34 (highlighted green area).
– Place the stop-loss slightly below $30 (red line segment).
– Target previous price peak at ca. $57.
– Profit/Loss ratio: ca. 23/4 ~ 6:1.

FUSION TELECOM INTERNATIONAL – NASDAQ: FSNN

EDIT on 14 Oct 2017: the gap from May 2014 is actually a 50-to-1 reverse split that is not accounted for on the price chart. The long term trend is down, not up, when accounting for it and for that reason this trade idea is cancelled.

Fusion Telecom delivers cloud solutions to businesses of all sizes. The stock already made incredible moves with variations from low to peak from $0.08 to $7.47 (x93) and more recently from $1.11 to $3.57 (x3.2). As such it can already be considered as a super-winner.

2017-09-10_FSNN

Fusion Telecom Multiframe Price Chart

Strategy
– Buy the breakout when the price moves above $3.8 (highlighted green area).
– Recommendation about where to place the stop-loss appears quite difficult for now; should be reassessed according to candle shapes at the time of the breakout.
– Target previous price peak at ca. $7.5.
– Profit/Loss ratio: n.d.

MONSANTO COMPANY – NYSE: MON

Monsanto is an agriculture company providing farmers with agricultural solutions encompassing seeds, software, fibers and fuels. The stock price has broken above a descending resistance line a few months ago following a period of accumulation and is compressed between a smaller descending resistance line and a rising support line.

2017-09-10_Monsanto

Monsanto Multiframe Price Chart

Strategy
– Buy the breakout when the price moves above $117.8.
– Place the stop-loss slightly below $110.
– Target previous price peak at ca. $140.
– Profit/Loss ratio: ca. 30/8 ~ 3.75:1.

PAYMENT DATA SYSTEMS INC. – NASDAQ: PYDS

EDIT on 14 Oct 2017: the gap from July 2017 is actually a 15-to-1 reverse split that is not accounted for on the price chart. The long term trend is down, not up, when accounting for it and for that reason this trade idea is cancelled.

Payment Data Systems, Inc. is an integrated payment solutions provider company. The stock price also made an incredible move from $0.25 to $5.49 (x22) in July 2016 but it has since formed what appears to be a  very broad consolidation pattern below a descending resistance line. It probably belongs as well to the super-winner category.

2017-09-10_PYDS

PYDS Multiframe Price Chart

Strategy
– Buy the breakout when the price moves above the descending resistance, which corresponds to ca. $2.95 for the week starting Sept 11th.
– The position of the stop-loss will need to be assessed when and if the breakout happens.
– Target previous price peak at ca. $5.5.
– Profit/Loss ratio: n.d.

1 Comment

  1. In this Equity Portfolio update from October 14th we have indicated that STOP order for Monsanto was moved to $118.32:

     

    Stop order should have been activated two weeks ago at a minimum profit.

    Reply

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