3 Price Channel Breakout Stocks

There are countless metrics and chart indicators that technical analysts use to determine buy and sell signals in the stock market. One way to identify short-term breakouts is by using price channels.
 

Price channels consist of a dotted simple moving average (typically a 20-day average) and solid upper and lower boundary lines plotted above and below the dotted line. The upper and lower channel lines represent the 20-day high and 20-day low of the stock’s trading range.
 

A breakout above the upper boundary of the price channel represents a new 20-day high and strong bullish short-term momentum, which is what traders are always looking for in the market. Here are three stocks that have broken above their price channels this week.
 

AT&T Inc. T

Somebody forgot to tell AT&T that the market is crashing. Not only did the telecom giant break above its upper price channel boundary this week, the stock booked new 52-week highs.
 

Related Link: 3 Bullish MACD Crossovers In A Brutal Market
 

Verizon Communications Inc. VZ

Not to be outdone, AT&T rival Verizon logged its own price channel breakout this week, although the stock is nowhere near its 52-week high.

Spectra Energy Corp. SE

Spectra shareholders are hoping that this week’s high-volume breakout will turn out better than the last short-lived breakout back in October.

Disclosure: the author holds no position in the stocks mentioned.