Anatomy of a Breakout: RCM (30.71%), VUL (15.84%)

Republic Cement Corp. (RCM) made an impressive 30.71% gain today  from 6.3 closing at 8.3 per share after consolidating for less than  two months (10 Jan to 21 Feb). As shown in the Graph below:

RCM_22Feb2012_Breakout

The next one is Vulcan Industrial and Mining (VUL) with a gain of 15.84 % from 1.020 to 1.170 per share  after consolidating from 11 Jan to 21 Feb.  On both cases the price stays almost the same throughout the period of  hybernation , momentum MTM 1 occasionally goes a little above the zero line while the MACD stays above the zero line, with histogram a little on the negative and occasionally on positive side. Note that the 32 day Simple Moving Average (SMA) crossed the 12 day SMA on the day of breakout (after temporary separation during consolidation).  The upcoming breakout signal  is shown with a green arrow pointing up on the MACD a week before the event.

VUL_22Feb2012_Breakout

I do not recommend buying such stocks unless there's an increase volume , uptrending momentum MTM1 , & positive MACD bullish signal .