Smart & Final
Stores, Inc. (SFS – NYSE)
Smart & Final Stores, Inc. operates as a food retailer in
the United States. The company operates through two segments, Smart
& Final and Cash & Carry.
Shares are breaking out today in fine fashion as they have
traded above resistance of a downward trendline and the 200-day
moving average, while volume is on pace to be well above
average.
As noted yesterday in my morning email report -
“A break above there ($16.69) with volume would have this
selection clearing that resistance, and triggering a technical buy
signal.”
Here is a little about trendline set ups/breakouts.
When tracing out the downtrend, you need at least three points
to define the trend. (See the green circles on the chart
above.)
The more points you can connect the better.
Also, having those points fairly evenly spaced adds significance
as well. Connecting a point that may be too far back in history may
not have as much relevance to today’s price action.
Another thing, since you are not buying a breakout to new highs,
you need to watch for areas of resistance that may loom above your
purchase price. These areas can include the 50 or 200-day moving
averages or some previous price high or lows. These areas can halt
any price progress. However, a break above – not only shows
technical strength – but also turns that area into your support,
which is nice.
Also, we can use the same trendline (blue line) that was
resistance before the breakout as support after a breakout. In the
event of a pullback, watch to see if shares hold or fall below that
line. Just like with our traditional breakouts – say out of a flat
base to new highs, we would not want to see a break back into the
base.
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James F. Taulman – For more than 8 years James had served as
Editor-in-Chief an independently licensed website that offered
stock reports and services based on the CAN SLIM® investment
system.
He has developed a knack for being able to quickly and
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investment strategy.Over the years, Mr. Taulman has enjoyed
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marketplace.
Each Sunday you could hear him deliver his weekly market report
as part of the “Your Money Matters” radio program on ABC and CBS
radio networks.
James now runs two websites and a portfolio service where he
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guidelines of the winning investing system.
At his long-standing
SundayStockReport.comwebsite, he produces a
weekly newsletter that includes his
High Ranked Leaders Watch List,
and ongoing portfolio style coverage on breakouts from that concise
list.
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BuyingBreakOuts.comis where he offers a stock
watch list each market morning, emailed out as a Stock WatchList
Morning Update. This report contains his hand selected stocks which
looked the most poised to break out. There are also real-time
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He designed this service to take only what he sees as the most
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________________________________________________________
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