Breakouts occur when a stock clears a price level that, for whatever reason, has been a virtual lid on the stock’s advance. Stock chart readers recognize it as the moment when a stock has thrown off that lid and has the greatest probability of making meaningful gains.
Stocks on The Move is an updated table on the Investors.com main page that screens stocks rising on larger-than-usual trading volume. A volume surge of at least 50 percent above average is essential for a breakout to work. In the stock quotes, volume percentage change is automatically calculated to project an end-of-day figure, which helps you tell if volume will reach this key level.
If the chart looks favorable, check whether the fundamental and other performance characteristics are strong. For that, the IBD Stock Checkup® answers most questions.