How can you spot potential breakout stocks like cloud security leader Zscaler (ZS) before they take off? Start by checking lists like the IBD 50 and IPO Leaders, as well as the IBD Breakout Stocks Index.
If you’re unfamiliar with how to read stock charts, a stock breakout is when a stock clears the buy point in a chart pattern. Also known as bases, these formations serve as the launchpads for potentially explosive gains. The trick, of course, is to have these stocks on your radar ahead of time, so you’re ready to act when they start to move above the buy point.
Here’s a look at how Zscaler flashed the classic signs of a breakout as it set up a new run in January. more