Chart Analysis by Irusha Peiris, CMT
Charts by MarketSmith®
See how a chart expert spots prime buying opportunities
during a big stock run! These annotated charts show how
webinar co-host Irusha Peiris evaluated 3 winning stocks
with a mixture of fundamental and technical analysis.
You can see 3 indicators appear before big breakouts in these stocks:
• Strong fundamentals (especially accelerating EPS and
increasing fund ownership) provide the fuel for growth
• The countdown begins with a rising relative strength line—
especially at new highs—while the stock builds a base
• The stock blasts off starting with a high-volume breakout
from a base
Consolidation
Power from pivot
Flat base
breakouts Tight Weeks
Tight Weeks
Even epic runs end. Look for the
warning signals and take your
Cup-with-handle profits when they tell you to.
Breakout
Strong RS and
Accelerating
angle of ascent
Earnings
with Blue Dot
Blue Dot appears Slowing growth
Slowing sales
New IPO
Blue Dot
up 7 weeks confirming
straight indicator
Improving
EPS estimates
Strong leading indicators
Blue Dot appeared
12/14/18
Excellent Up/Down 1/4/19 Strong RS line
Volume Ratio 1/11/19 angle of ascent
Increasing Fund Shakeout
Ownership
Strong Industry Group
Strong Ratings 10-week run
& Rankings
8 Blue Dots prior
to breakout
Strong ROE
Strong RS Line
angle of ascent
Huge Weekly Volume
Steady Sales
Increasing Earnings
