This Day On The Street
Continue to site
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

5 Stocks Setting Up to Break Out


If you're looking for an emerging-markets stock that could be setting up to break out, then take a look at the action Quepasa (QPSA), which owns and operates, a social network and gaming platform for the Latin community. This stock has trended lower so far in 2011, with shares off by around 30%.

The chart for Quepasa shows that the stock is starting to trade above a key descending trend line that had been acting as resistance on the stock for the past couple of months. This is something that traders need to watch closely on this stock since a strong move above this trend line could signal a bigger move higher is coming for Quepasa.

I would suggest looking for a closing price on Quepasa that puts it above that resistance zone. If you see that, then watch for the stock to start challenging some breakout prices between $8.90 and $9.64 a share. One could buy this stock on a close above the descending trend line that comes on big volume.

I like some of the recent volume on the upside that has already been picking up dramatically. We have had two recent up days where volume was 4.4 million and 2.1 million, which is much, much higher than the three-month average volume of 867,000 shares.

It's worth noting that this is another stock that's heavily shorted. As of May 13, the current short interest as a percentage of the float for Quepasa is a rather large 22.5%. The short-sellers have also increased their bets from the last reporting period by 16.5%, or by around 400,000 shares. This stock could see a big short covering rally soon if we do get

I also highlighted Quepasa recently in " Stocks to Play a Social Networking Bubble."
4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
QPSA $0.00 0.00%
AVNR $16.96 0.00%
CMG $454.16 -1.30%
MNTA $11.50 -2.30%
MPEL $12.88 -4.30%


Chart of I:DJI
DOW 15,948.57 -256.40 -1.58%
S&P 500 1,851.08 -28.97 -1.54%
NASDAQ 4,270.9040 -92.24 -2.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs