What im trying to find are blue sky stocks (52week high is good enough) that have not run too far from resistance.
THe best ones are the stocks that have been range trading/consolidating for a while, from my experiences these types of stocks run hard (Im watching AED/NWE in anticipation).
Eg. BMN when it closed at above 3.00 for the first time in mid-March, or MTN when it broke 4.00 significantly and closed at 4.27 i think it was.
Those that have already run its hard to get a big winner out of them because the stop has to be too far from the action.
Ones that iv found so far are AGM and MRU.
It would be nice if we could keep a continous thread about this, but i guess the breakout thread already maybe covers it??
Best way to play these stocks in my opinion is to buy 1/2 parcel on the first white candle bullish high volume break through resistance, then if it pulls back, AFTER it bounces, then you get the 2nd half of the parcel with stop below the point it bounced which would be the previous resistance (or channel ceiling). In my opinion.