How To Use Powerful Breakaway Gaps To Buy Potentially Big Stock Market Leaders

Blockhead12-09

Breakaway gaps — when a stock gaps up so strongly in price that it rises past a proper buy point — are powerful breakouts. The unusual power signals the stock's upside is likely just beginning. On ...

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The unusual power signals the stock's upside is likely just beginning.\nOn ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/breakaway-gaps-signal-unusual-strength-buy-stock-market-leaders/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>How To Use Powerful Breakaway Gaps To Buy Potentially Big Stock Market Leaders</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHow To Use Powerful Breakaway Gaps To Buy Potentially Big Stock Market Leaders\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-09 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/how-to-invest/investors-corner/breakaway-gaps-signal-unusual-strength-buy-stock-market-leaders/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Breakaway gaps — when a stock gaps up so strongly in price that it rises past a proper buy point — are powerful breakouts. The unusual power signals the stock's upside is likely just beginning.\nOn ...</p>\n\n<a href=\"https://www.investors.com/how-to-invest/investors-corner/breakaway-gaps-signal-unusual-strength-buy-stock-market-leaders/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4183","symbol_name":"个人用品","start_time":0,"source_url":"https://www.investors.com/how-to-invest/investors-corner/breakaway-gaps-signal-unusual-strength-buy-stock-market-leaders/","article_id":"2490700539","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2019/01/Stock-BullRedInRing-01-adobe-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490700539","pubTimestamp":1733749235,"columns":[],"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Breakaway gaps — when a stock gaps up so strongly in price that it rises past a proper buy point — are powerful advances that can lead to more upside.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4183":"个人用品","MED.AU":"Merlin Diamonds Ltd","MED":"快验保","BK4532":"文艺复兴科技持仓"},"translate_title":"如何利用强大的突破缺口购买潜在的大型股市领导者","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MED":1,"MED.AU":1},"content_text":"Breakaway gaps — when a stock gaps up so strongly in price that it rises past a proper buy point — are powerful breakouts. The unusual power signals the stock's upside is likely just beginning.\nOn March 7, 2018, Medifast (MED) soared over 30%, surging above a 74.78 buy point in a consolidation (1). Shares opened far above the 74.88 buy point and even past the 5% buy range of that entry (2), which went to 78.62. Volume skyrocketed more than 1,100% above average (3), indicating the type of institutional demand that contributes to sustained stock uptrends.\n\n\n\n↑\nX\n\n\n\n\nMarket Reallocations And Rotations Are Set To Crown New Winners. Here's Where To Look.\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nMarket Reallocations And Rotations Are Set To Crown New Winners. Here's Where To Look.\n\n\n\n\nBut it's not too late to buy a stock even when it gaps up so much that it totally misses the 5% buy zone. You just have to adjust the buy point. Specifically, use the high price of the first five minutes of the gap-up, which you can find with a five-minute intraday chart in IBD MarketSurge or your brokerage. Buy shares as close as possible to that price and no more than 5% above it.\n\nOther trading rules apply to this adjusted buy point. For example, sell if the stock falls 7% below your purchase price.\nMedifast's rally was so strong, it triggered the eight-week hold rule: When a stock runs up 20% or more within three weeks of the breakout in a healthy market, try to hold it for at least eight weeks to see if it can become an outstanding market winner. There is often a correlation between power and distance. The more powerful the breakout, the higher the stock tends to go. Medifast indeed turned out to be a winner, topping out at almost 261 in September 2018.\nBreakaway Gaps And Strong Fundamentals\nThe catalyst in the 2018 move for Medifast was a much better-than-expected earnings and sales report. The provider of weight-loss programs reported quarterly earnings and sales surges of 76% and 25%, respectively, vs. the year-ago period. Earnings growth accelerated for a second straight quarter, from 0% to 8% to 76%. Sales also accelerated, from 6% to 13% to 25%. Accelerating earnings and sales are bullish metrics that can help spark sustained price moves.\nMedifast gapped up again three months later, with the company's next earnings report. This was not a breakaway gap, but rather a regular gap-up.\nOn June 20, the stock advanced as much as 139% past the 74.88 buy point. By then, there were signs that the stock was overheating. The stock climbed more than 100% above the long-term 200-day moving average, a sign that the stock is far extended from any potential support level. According to an internal IBD study done in the mid-1990s, leaders topped once they got on average 111% above their 200-day averages.\nThe next day, the stock plunged 12.6% in huge volume. This was the largest one-day point loss during the stock's long advance. After a long advance of many weeks or months, this negative action often signals that the stock has topped.\nBut the stock wasn't done yet. Despite those sell signals, Medifast was able to shrug off those losses and rally for another two-and-a-half months, eventually topping on Sept. 13, 2018, at 260.98, nearly 250% above the 74.78 buy point.\nThis article was originally published June 4, 2021, and has been updated.\nYOU MAY ALSO LIKE:\nTop Growth Stocks To Buy And Watch\nMarketSmith: Research, Charts, Data And Coaching All In One Place\nFind The Best Long-Term Investments With IBD Long-Term Leaders\nLooking For The Next Big Stock Market Winners? Start With These 3 Steps\nHow To Research Growth Stocks: Why This IBD Tool Simplifies The Search For Top Stocks","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490700539"}