Penny Stock Breakouts

This group is dedicated to the penny stock traders who like to focus on breakout plays. The vanilla method to playing support and resistance is to buy at support and sell into resistance, but the breakout play takes the opposite approach. In essence the point is to identify where the key levels of support and (especially) resistance are, and try to guess/ predict/ spot/ trade the instances where the buyers break through resistance, creating an imbalance in supply and demand and ultimately a strong rally.

Almost any runner can be seen as a breakout play, since on some time frame or another it's likely breaking some sort of resistance (even if it's simply on an intraday level), but my ideal setup would be a break/test of resistance w/ significance on a longer/ mid term time frame. You're not always going to get those textbook 52 week high breakouts/ or new all time highs. Sometimes the setup may be a break to new short term highs (1-3 month), but minimal resistance overhead. The point to keep in mind is that breakout setups come in all different shapes and looks, but your job is to spot what you believe to be the best ones and stick to trading those.