More Stocks Potentially Readying For a Breakout

Here are some stocks that are consolidating but have not broken out yet. Each one

Is getting very close to their respective buy pivot points, or path of least resistance as Jesse Livermore referred to break out levels.

ACOM (potential cup with handle)
APKT (cup)
ARMH (cup)
ASML (square box)
CMI (cup, potentially cup with handle)
CPX (cup with handle)
CXO (flat base)
DECK (cup)
DOV (cup, potentially cup with handle)
ILMN (cup, potentially cup with handle)
NFLX (late stage cup)
POT (double bottom or cup)
VSEA (slight V shaped cup base)

Each of the stocks above meets a strict search criteria that conforms with most of the elements of IBD’s CANSLIM. Not all the stocks listed above are in the top industry groups, which is something to consider, but not a deal breaker. Also, some stocks don’t have the 17% ROE, but each stock has top not fundamentals and has at least 25% EPS growth in the most recent quarter.

CMI, CPX, CXO, DOV & DECK have sales growth in the most recent quarter that is between 20 and 25% instead of the over 25% I’d prefer, but most of these are projected to have this quality next quarter. DECK, unfortunately, is projected to have negative EPS growth next quarter. I usually shine a stock if this is the case, especially when you have other high growth stocks to select from.

I’ve put charts below of those I think look the most agreeable. They are daily charts and the green arrow shows the pivot point. Note that sometimes the arrow is not at the origin of the handle. When a day’s action in the handle moves above the original pivot (previous high of the handle) but eases back down on low volume, that day’s high becomes the new buy point, but the length of the handle does not change. Five days or longer is the proper time for a handle to form, so keep an eye on the stocks as they continue to develop.