Smart 52 Week High Alert

The Smart 52 Week High alert is used to identify stocks that are breaking to new 52 week highs for the first time in over a month. This alert is NOT designed to generate signals for stocks that are breaking into new highs daily, but instead is triggered only for those breaking into new high ground for the first time in a month or more. Often times, these breakout stocks result is excellent short term gains, as the stock continues to rise beyond the breakout point and extends it's gains over the subsequent week or longer.

Example:

First Health Group Corp., FHCC, is an ideal example of this strategy. Not only had FHCC been unable to pierce it's prior 52 week high for several months, but it also had approached this resistance level repeatedly and was turned back every time. This created a very strong resistance level which is very difficult to break through. However, once the resistance is broken, the stock is free to move substantially higher after the extended consolidation. As an added benefit, this broken resistance level becomes a support level for the stock in the future.

The following chart shows the price performance of FHCC in the days following the TradeSeeker breakout alert. Not only did the stock continue higher on the breakout day, closing at it's high, but the stock also continued it's momentum for the following week for a 10% gain above the breakout point.