Ceiling Bursters
These are stocks that have burst through the resistance of a high
during the week (52-Week or 6-Month or 3-Month highs).
Stocks that appear in the 6-Month list are only there
if they did not achieve a 52-Week High. Similarly, stocks in the 3-Month list
only appear if they are not in the 52-Week and 6-Month tables.
Stocks included in these screens are sorted in descending order
by the number of weeks it has been since they had achieved the previous old high, so the stocks at
the top of the tables are those that had been basing the longest before they hit their new high.
Stocks in the Ceiling Bursters screens must satisfy the following requirements:
- The stock has achieved a new period high
- The price advance for the week must be at least 3%
Before you decide to buy a Ceiling Burster stock, make sure that it pierced
through the resistance to its new high on heavy volume. As mentioned in the
New Highs and Volume section, you want a stock that
has a big buying commitment behind it.
If you find a Ceiling Burster that looks compelling, you can buy it right away
or wait for a pullback. But be careful of chasing a stock that has extended
itself far above the prior resistance level.
See Ceiling Bursters tables from several weeks ago.
PRX was a Ceiling Burster on Jan17,2001, achieving a new high on 4.8x average
volume. It almost quintupled in value in less than 6 months,
as you can see in the illustration below.
BEFORE
(As Of Jan17,2001)
Burst through an 11-week-old high
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AFTER
(As of Aug02,2001)
It soared 378% in less than 6 months
|
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