Search breakouts is a good strategy followed by many professional Traders. It can be a good way to pick stocks and benefit from their growth. Just two weeks ago, I received an email from Hans C.N from Florida. Hans told me how he built a portfolio only with the "breaks" that we mentioned in this blog. Following a few simple rules, he took advantage of these stocks and earned an annual return of 67% in this portfolio. I am preparing an article which details how to build and manage a portfolio with of stocks that make these breaks. I hope to publish during the next week.
Yesterday, I was reviewing the information obtained from our Stock Picks System and found Teradata Corp. (TDC). This stock made a very interesting breakout on Friday, so I decided to show this company on the blog today.TDC closed on Friday at a price of US$65.48, an increase of 2.89% on the previous day. Its volume was 2.19 Millions of shares, almost double what is traded daily. However, the most interesting of this stock, is that on Friday broke a base of price began in July of last year. TDC broke a pattern that is one of my favorites. It's called "W or "Double Bottom". The following chart can boast this formation very clearly. Generally, when a stock breaks a "double bottom" formation continues to rise significantly.
Teradata provides enterprise data warehousing solutions, including enterprise analytic technologies and services, and integrated marketing software. It is a rapidly growing company and is included within 50 Top of IBD. This company has a Market Cap of US$ 10.96 Billions, a P/E of 31.87 ans an EPS of 2.05. It also has 167.40 Millions of shares, of which 89% is owned by institutional investors.