From the research I've gathered, when a stock breaks out of a 12 month or longer sideways period, over 80% of the time will the stock be at a higher level three months after the time of the initial breakout. Some of these breakouts take a few weeks to develop, and some, like OIS (shown below), take off immediately with the speed that you would if you sat on a thumb tack. Hopefully the one we are looking at today will do the same.
Here's OIS, which gave a breakout signal on May 1st, before rising 10% in the next 9 days. The buy signal is always when the price breaks above its previous range high.
More examples of stocks making breakouts last week: MOH, PRU, ISLE, and EE.
One that put out a signal this week is Dow Chemical. This stock is already known for being mistaken as the Dow Jones Industrial Average when new investors inadvertently type in its ticker symbol (DOW) to stock charting software and Yahoo Finance. This stock has been generally dormant for the better part of 16 months, and is likely about to awaken. Check out the video below for the details and the trading strategy. Make sure to watch in full screen and HD for the best viewing experience!