US Swing Trading Stocks Near Major Breakout Levels

The S&P 500 remains strong, and while there is always a chance of a pullback, it remains a favorable time to be swing trading stocks that are exhibiting overall strength and that are near breakout levels. These breakout levels let us know when the stock could be embarking on its next advance.

Below we’ll look at some stocks that are poised for another potential rally to the upside.

Black Knight (BKI) is approaching the $64.80 resistance area for a fifth time, this time after a false breakout below range support. This all comes after a  strong uptrend. If the price breaks above $64.80 the uptrend is likely to continue. One doesn’t necessarily need to wait for a breakout above $64.80. If a consolidation develops just below that level, then a breakout of that small consolidation could also act as an entry signal.

An estimated target is $72 to $73 for this pattern.

BKI has been steadily growing their yearly sales, and significantly increasing profits over the last five years.

BKI swing trade stock idea

 

Sea (SE) is consolidating near a former high. This stock has been very strong. Typically I like to see the price oscillate a few more times around resistance. This gives the stock a chance to shake out any weak players and coil up (load the spring) for a big move. BKI, above, is a potential example of that. But when a stock is really strong, I am more willing to jump in if a stock breaks resistance on its first attempt. A closing price above $38 in SE would be bullish and signals a continuation of the rise

Due to the strength of the stock—it was up more than 250% at one point in 2019—I would use a trailing stop loss on this one. Don’t want to cut off a winning trade too early.

The company still isn’t profitable, but they do have rapidly expanding sales. With the stock so strong it would seem investors are optimistic that increasing sales will eventually turn into profits.

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Disclosure: The author doesn’t have positions in these stocks currently, but may initiate positions if the stock prices slide a bit lower. None of the content in this article should be ...

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