This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

8 Stocks Setting Up to Break Out

Claude Resources

Another stock that's coming up on a major breakout is Claude Resources (CGR). This company acquires, explores, and develops precious metal properties, as well as produces and markets minerals in Canada. Claude Resources principally focuses on gold. This stock is off to a solid start in 2011, with shares up around 11%. But those gains are going to look like nothing if this stock does what it technically looks poised about to do.

If you take a look at the chart for Claude Resources, you'll see that this stock is setting up to potentially trade above $2.60 to $2.90 a share. Both resistance levels are very significant. The $2.60 level has been an area that the stock has struggled to get over for the past two weeks. The $2.90 area is even more key because it marks the all-time high on the stock.

What I love about the technical action in CGR is that the stock has been in a strong uptrend for quite some time. During this uptrend, CGR has been making higher highs and higher lows, and it's formed a bullish uptrend channel. Another reason to love CGR is because the company is in the right sector at the right time. Gold, as represented by the SPDR Gold Trust (GLD), is only a few points away from breaking out and printing new all-time highs.

Jim Cramer says that half of a stock's move comes from its sector. I agree, and I completely expect CGR to follow any future strength in gold prices. If CGR breaks out to all-time highs, then I see this name doubling or more from current levels. What's great about this play is that you can place a stop if you buy now right around the 50-day moving average of $2.37 or even near the uptrend line at around $2.15.

If CGR trades below either level, then you can dump the stock and move on. However, if it starts breaking out above those resistance levels mentioned earlier, then I would add aggressively and look for an explosive move higher.

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,265.99 +109.14 0.64%
S&P 500 2,011.36 +9.79 0.49%
NASDAQ 4,593.4250 +31.2360 0.68%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs