“Breakout Patterns Pay Off! See 2 Successful Examples Here

The stock market is full of challenges for investors every day and one of the most successful strategies is the base pattern. That means investors buy stocks that are between $5 to $20 and wait until the stock moves up before selling them. This is often seen as a long-term investment strategy, but recently it has been used for shorter-term breakout trading. The base pattern seeks to identify stocks that are trading at or near their 52-week lows but have the fundamentals and catalysts to indicate that a breakout is imminent. Once the stock has made the move, investors can quickly maximize their profits by selling the stock before it hits resistance. This strategy can be extremely profitable if the stock is increasing its price rapidly and can be used to generate sizable returns on a relatively smaller investment. Two stocks that have recently seen huge gains from this strategy are Marathon Petroleum Corporation (MPC) and Biogen Inc. (BIIB). MPC saw a breakout earlier this month and has managed to gain close to 20%, while BIIB has gained more than 30% since its initial breakout in April. Marathon Petroleum Corporation is a leading U.S. based refiner and marketer of petroleum products. The stock saw a huge upside in June after posting better-than-expected Q1 earnings and increasing the dividend by 15% in October. MPC’s fundamentals, such as strong balance sheet and healthy cash flow, make it the perfect stock to capitalize on a base pattern breakout. Biogen Inc has been a leader in the biotechnology industry for a long time and its stock has seen tremendous growth since its initial breakout. The company is currently in the midst of a late-stage clinical trials revival for its Alzheimer’s disease candidate, aducanumab. If these trials are successful, Biogen’s stock is likely to surge and offer investors a great opportunity for profits. The base pattern has been a very successful strategy for investors of all levels. It can be used by both long-term investors and short-term traders alike. The key is to identify stocks with the right fundamentals and catalysts in place and have the discipline to wait for the right time to maximize the potential profits. The two stocks that have recently seen huge gains are a prime example of how effective this strategy can be.