When to buy a breakout??

[none9999]

Hi guys!

So, I have been looking at some momentum plays....now my problem is that unless you have been following the particular stock from sometime before, you dont really come to know about a breakout until the end of the day when it has occurred. I look for them is by the huge increase in volume.....Anyway, when does one get in now?? I cant seem to make up my mind from just looking at old charts....some I see pullback to test the support very soon but some just go straight up for 2-3 days. In this case, if you keep waiting for a pullback, you miss the meaty part of the rally.

So, what's the right time to get in a stock if you come to know about it after its breakout day? What strategies do you guys employ in situations like these??

Thanks!!!!!

[wallstreetsedge]

look for retraction, or constant testing...

normally i look for a stock to test a resistance 3x and buy on the confirmed move up

other times i look for a 60% retraction or or big dips on new highs

[none9999]

Thanks WSE! Helpful as always. I actually had GB and KG in mind. I guess the point from where the breakout occurred would be the support. I am trying to attach the charts....lets hope I am successful.

For GB, the support would be 21.91 and for KG, it would be the high made yesterday. Actually, since they both are making new short term highs atleast, what do u exactly mean by the resistance WSE?? Thanks!!

I am trying to choose and KG looks the more attractive option to me. It snot as far from the breakout point as GB. Also, the 50 day MA in this case is over the 200 MA. It also kind of held up the new high made yesterday with a decent volume while GB is yet to be tested. Am I reading the charts right?? Thanks!!

BTW, I appreciate more now what you said that day about just looking at TA and forget about FA while looking at momentum plays WSE!

[none9999]

I couldnt get the damn charts to show :confused:....I hope the links below at least work.....

http://stockcharts.com/h-sc/ui?s=GB&p=D&b=5&g=0&id=p76454680162
http://stockcharts.com/h-sc/ui?s=KG&p=D&b=5&g=0&id=p76454680162

[none9999]

On second thought, even GB seems to have gone quite close to the support today but I like the fact that KG is going up in more orderly fashion. Also, the slope of MACD is a lot steeper for GB than for KG. I hope I make sense...