Ross Stores: Poised for a New Breakout?
In this video, Mark Yegge explores the potential for a new breakout in Ross Stores (Rost). Inspired by a recent observation of a bustling Ross Dress for Less store, Mark delves into the company's performance and chart patterns to assess whether now is a good time to consider this stock for your portfolio.
Ross Stores' Recent Performance
- Observations and Initial Research: Mark's interest in Ross Stores was piqued after noticing a high volume of shoppers. This led him to investigate the stock's potential and upcoming breakout.
- Growth Trends: While Ross Stores may not be growing as rapidly as some tech giants, it has shown steady and consistent growth. The company's stock has increased from $4.36 to $4.87 in 2022, with projections of reaching $6.50 in the coming years.
Technical Analysis
- Stock Chart Overview: Mark highlights the positive trajectory of Ross Stores' stock chart, emphasizing the importance of charts that move from the lower left to the upper right. This indicates a stable and upward trend.
- Breakout Patterns: Reviewing the stock's history, Mark identifies multiple breakouts over the past year. He notes a significant breakout in late 2023, characterized by a cup with handle pattern, leading to a price surge from $120 to $145-$150.
Current Breakout Potential
- Recent Activity: The stock recently tested its 200-day moving average and has since shown a new trend upwards. A significant volume increase six weeks ago suggests renewed interest and potential for further gains.
- Consolidation and Resistance Levels: Ross Stores is currently consolidating around the $150 mark, indicating that it may be ready for another breakout. The key level to watch is $150, with the potential to reach $180-$185 if the breakout occurs on strong volume.
- Profit-Taking Strategy: Mark advises that investors consider taking profits around the $180-$185 range. However, it's also wise to leave some shares in play in case the stock continues to run beyond this initial profit-taking zone.
Additional Insights
- Swing Trading Course: Mark introduces his "Trade Like a Pro Accelerator," a swing trading course with live workshops and mentorship. He shares past successes with stocks like NVIDIA and Apple, underscoring the value of learning to spot breakouts early.
- Insider Tips Newsletter: Subscribers to Mark's Insider Tips newsletter receive early access to his analyses and stock picks. He encourages viewers to subscribe to receive timely updates and potential breakout alerts.
Key Takeaways
- Steady Growth: Ross Stores has shown consistent growth and solid performance, making it a reliable stock to watch.
- Breakout Potential: The stock is currently consolidating and may be ready for a breakout, with a target range of $180-$185.
- Volume and Patterns: Strong volume behind the breakout is crucial for confirming the stock's upward movement.
Life-Improving Tips
- Early Detection: Learning to spot breakouts early can significantly enhance your trading success. Consider educational resources and mentorship to develop this skill.
- Risk Management: Always have a profit-taking strategy in place, but be flexible enough to let winners run for maximum gains.
- Stay Informed: Subscribing to newsletters and following market analysts can provide valuable insights and timely information to inform your trading decisions.
FAQ
- What is a stock breakout?
A stock breakout occurs when the price moves above a resistance level or below a support level with increased volume. It often signals the beginning of a new trend.
- Why is Ross Stores considered a good breakout candidate?
Ross Stores has shown consistent growth and has recently exhibited a consolidation pattern around the $150 mark. The stock's historical performance and current chart patterns suggest it may be poised for a new upward trend.
- What are the key levels to watch for Ross Stores?
The critical level to watch is $150. If the stock breaks out with strong volume, it could potentially reach $180-$185.
- How should I approach profit-taking?
Consider taking profits around the $180-$185 range. However, it's advisable to leave some shares in play in case the stock continues to rise beyond this initial target.
- What is the "Trade Like a Pro Accelerator" course?
This is a swing trading course offered by Mark Yegge, which includes four weeks of live workshops and mentorship. The course aims to teach traders how to spot breakouts before they happen and enhance their trading skills.
- How can I get early access to stock analyses and alerts?
By subscribing to Mark Yegge's Insider Tips newsletter, you can receive early access to stock analyses, alerts, and other valuable trading insights.
Call to Action
If you found this analysis of Ross Stores insightful and want to stay ahead of market trends, consider subscribing to Mark Yegge's Insider Tips newsletter. By subscribing, you'll get early access to stock picks, analyses, and valuable trading insights.
Interested in becoming a better trader? Join the "Trade Like a Pro Accelerator" course to learn how to spot breakouts before they happen and maximize your trading potential.
Conclusion
Ross Stores (Rost) appears poised for a new breakout, with a promising chart pattern and solid growth potential. Investors should monitor the stock closely, especially around the $150 resistance level, and be prepared to capitalize on a breakout if it occurs with strong volume.
