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Breakouts To Note for December 22, 2010

|Includes:STI, United Bankshares, Inc. (UBSI), ULTA

 

United Bankshares (UBSI) has had a swell of volume come in recently and has broken out of a handle today on relatively high volume. This cup with handle base has been forming since May, and has shown very constructive price / volume action over the right side of the cup. Previously, the run up to this basing pattern was very linear, a common characteristic of the top performers.
 

Ulta Cosmetics And Fragrance Inc. recently broke out of a volatile flat base (or ascending base), and just had its first test of the 50 day SMA. This is usually a great place to add, or initiate position in growth stocks. The reversal pivot occurring today confirms our test and reversal to the upside in ULTA

Suntrust Banks, Inc. is a riskier play. The reason I include here as a possible mover, is that under a study of stocks that move 50%+ in a month, the breakout often looks much like STI is presenting us with. When we view stocks historically that have done well, their bases are usually well-defined. However, in real-time, this is hard to see because distortion is different and not in effect. Therefore, the "neat and clean" bases in retrospect, often look volatile in real-time. This stock also has some other characteristics that match our 50% study. This is worth taking with the proper risk management in place.

Positions: None
 

Stocks: UBSI, STI, ULTA