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Set-Up Near Prior Highs After 13-Week Cup Shaped Base - Wednesday, February 08, 2012
Often, when a leading stock is setting up to breakout of a solid base it is highlighted in CANSLIM.net's Mid-Day Breakouts Report. The most relevant factors are noted in the report which allows prudent CANSLIM oriented investors to place the issue in their watch list. After doing any necessary backup research, the investor is prepared to act if and when the stock triggers a technical buy signal (breaks above its pivot point on more than +50% average turnover). In the event the stock fails to trigger a technical buy signal and its price declines then it will simply be removed from the watch list. In other cases, stocks may be featured in CANSLIM.net's Mid-Day Breakouts Report.after recent action already triggered technical buy signal. Disciplined investors know to buy as near as possible to the pivot point and avoid chasing stocks after they have rallied more than +5% above their pivot point. It is crucial to always limit losses whenever any stock heads the wrong direction, and disciplined investors sell if a struggling stock ever falls more than -7% from their purchase price.
Randgold Resources Adr (GOLD -$0.04 or -0.03% to $114.56) was featured in yellow in yesterday's mid-day report (read here) with a pivot point based on its 52-week high plus 10 cents after a 13-week cup shaped base. Subsequent volume-driven gains into new high territory may trigger a technical buy signal. This UK-headquartered firm in the Mining - Gold/Silver/Gems group showed very strong sales revenues and earnings increases in the Mar, Jun, Sep, and Dec '11 quarterly comparisons much greater than the +25% minimum guideline following sub par Dec '10 quarterly results. Annual earnings (A criteria) history improved since a downturn in FY '08. It has seen an increase in the number of top-rated funds owning its shares, rising from 247 in Sep '11 to 290 in Dec '11, a reassuring sign concerning the I criteria. The Mining - Gold/Silver/Gems group currently has a rather poor Group Relative Strength rating of E, however there is reassuring leadership from a couple of other high-ranked stocks in the group helping to satisfy the L criteria.
