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One of my favorite technical tools is the 50-day moving average.
I look at it as an area of support and resistance, and I use its slope as an indication of where a stock is headed.
I also like to look at breakouts above the 50-day as a bullish indicator, as the 50-day typically demonstrates underlying strength that has some staying power and will likely continue at least in the short run.
This morning, I ran a scan for these breakout stocks and came up with a list of big profit opportunities, which I'm going to show you in a mintute.
While this indicator alone is usually sufficient for a bullish play, I naturally like to confirm a stock's profit potential by looking at short interest.
It's an extremely powerful, very accurate technical indicator, and when it serves to confirm a breakout above the 50-day moving average…
…that's when you know you've got the potential for high-profit bottled lightning on your hands…
About the Author
Chris Johnson is Quantitative Specialist for Money Map Press. He's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.