From the fastest traders to the most relaxed investors, one particular base pattern is increasingly gaining traction in the stock market: the breakout.
In recent weeks, the breakout, which marks the point at which a stock reaches a new high, has seen a sharp uptick in activity. This potential buying opportunity has been an attractive target for those looking to maximize their returns in the market, and has resulted in several notable breakouts.
Two stocks at the forefront of this trend are TerraForm Global Inc. (NASDAQ: GLBL) and American Assets Trust Inc. (NYSEMKT: AAT). Both stocks have seen significant successes as a result of the breakout pattern.
For TerraForm Global, a Bethel, Connecticut-based renewable energy stock, the breakout came in late June when the company announced it had acquired some oil and gas assets in Mexico, Colombia and Peru. This announcement sent GLBL stock from around $6.00 to more than $8.00 in just a few days.
American Assets Trust, a real estate investment trust based in San Diego, also experienced a bullish run on the back of a breakout pattern. Its stock began climbing in early June, as the news of economic recovery and the easing of restrictions during the pandemic helped boost the company’s share price. From there, AAT stock rose to nearly $30.00 per share.
The breakout pattern is proving to be an increasingly popular technical indicator, indicating that stocks are about to take off. For investors who are able to spot this trend, the potential returns could be significant.
The success of TerraForm Global and American Assets Trust in utilizing this strategy should be a lesson to investors looking to maximize their returns. If you can identify stocks that are on the cusp of a breakout, the potential for gains is greater.
It is important to remember that breakouts carry their own risks as well as rewards. Be sure to do your due diligence before deciding to invest in a stock that has recently broken out; although they can yield great returns, let the data guide your decisions.
All in all, the breakout has proven to be a reliable stock market trend, and one that can provide great rewards to those that know how to spot it. TerraForm Global and American Assets Trust are two companies who have seen success using the breakout pattern, and their successes may provide inspiration to bullish investors moving forward.