Another stock that could be setting up to breakout is Southern Company (SO). Southern Company, through its subsidiaries, operates as a utility company that provides electric service in the southeastern United States. This stock is quickly approaching a breakout with shares currently trading at around $36 a share.
Look for Southern Company to take out some near term resistance at around $36.32 to $36.78 a share to confirm the breakout. A move above $36.78 would mark a new 52-week high and would demonstrate the shares are in high demand. If the stock can manage to get above that level, it could make a run towards all-time highs at around $40. I think the chances for this look good since the stock has been acting strong even while the market has been struggling.
Just last week, the stock traded above $36.50 while the overall market sold off. That move came on decent volume of 5.7 million shares versus the average 3-month volume of 4.9 million shares. A move above $36.78 on volume above 4.9 million should confirm that Southern's breakout is for real not a false move. The stock also has a 5.1% dividend yield, so you could get paid to wait for the move.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV