Summer Breakouts

Are any stocks poised to break out or break down this summer? Seems like a good time to check in with Dan Fitzpatrick of StockMarketMentor.com.

Patterns in three areas of the market suggest to Fitzpatrick that they could, in fact break out. They follow:

Homebuilders (XHB)

We’ve had a series of lower highs and lower lows, explains Fitzpatrick. That’s bearish. But back in April we had the first higher high in quite a while. That suggests the sector could start moving higher if we now get a higher low. In other words the sellers could be done selling.

Integrated Oils (XLE)

There’s consolidation just below the 200-day moving average and that pattern looks bullish to me.

Semiconductors (SMH)

The sector is up 21% since the low but compared to most other sectors that’s nothing, says Fitzpatrick. Patterns in this chart suggest it could move to the upside.

For Dan Fitzpatrick's complete analysis please watch the video.



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