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

5 Stocks Setting Up to Break Out

Stock quotes in this article: MCZ, VNDA, PWRD, DECK, BWLD

WINDERMERE, Fla. ( Stockpickr) -- Stocks continued their upward swing on Friday as the market continued to shake off bad news and defy the bears.

The Dow Jones Industrial Average closed higher by 56.68 points at 12,341.83, and the S&P 500 closed up by close to 5.16 points to 1319.65. The tech-heavy Nasdaq also finished higher, by 4.43 points, at 2764.65

It seems that no matter what is thrown at this market, including disappointing earnings out of search king Google (GOOG) and banking giant Bank of America (BAC), equities continue to power higher. This has to be madly frustrating to the bears, but as always, it's a lesson in why it pays to stick with the trend, or the path of least resistance.

To be fair, the market still hasn't broken out above some key technical resistance areas, but it's very close to doing so, and the trend remains up.

The breakout level to watch for on the Dow Jones Industrial Average is above 12,450.93 and on the S&P 500 is 1339.46 to 1344.07. On the Nasdaq, it's 2815.55 to 2840.51. The Nasdaq remains the weakest of the three major U.S. indices, and the action in Google on Friday wasn't helping matters after the stock finished down by 47 points, or about 8.2%.

Related: Beaten-Down Tech Stocks Set to Bounce

It's very important that traders watch how all three major indices behave in the next couple of days and weeks. It would be very bullish to see a weekly close on at least the Dow and S&P 500 that's above those levels I mentioned. The Nasdaq probably has more work to do before it can attempt to break out, so don't key off that index for now. If we do trade to new highs, then we're going to see tons of stocks following the averages and breaking out as well.

Trading breakouts is not a new game on Wall Street. This strategy has been by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. With that in mind, here's a look at a number of stocks that look poised to break out and trade significantly higher from current levels.

1 of 6

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 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

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