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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Stocks Setting Up to Break Out

Jazz Pharmaceuticals

If you're looking for a biotech star that's starting to break out, then take a look at Jazz Pharmaceuticals (JAZZ), a specialty pharmaceutical company focusing on the development and commercialization of pharmaceutical products to meet unmet medical needs in neurology and psychiatry. This stock is off to a blazing start in 2011, with shares up over 88%.

A Piper Jaffray analyst recently started coverage on JAZZ with an overweight rating and a price target of $51 a share, which is well above its current price near $37 a share. The analyst is bullish on the future sales of Xyrem, a narcolepsy drug that costs about $30,000 a year.

If you take a look at the chart for Jazz, you'll see that this stock biotech player has already started to break out above some past overhead resistance at $36.47 a share. What I love about this breakout in Jazz is that it has started onhuge upside volume. Volume on Thursday, which was the first day of the breakout, clocked in at 1.3 million shares, which is well above the three-month average volume of 781,300 shares. In fact, the volume for the entire past month has been very strong when you compare the action on the up days versus the down days.

What's even more bullish about this move on JAZZ is that the stock is now trading just one point off of its all-time high of $38 a share. This means that just about everyone who has bought this stock is making money. It also means that momentum traders are going to circle around this stock since it is displaying so much strength and hitting new highs almost daily.

It's worth noting that the current short interest on JAZZ is rather large at around 13.4% of the tradable float. The short-sellers have also been increasing their bets from the last reporting period by 7.7%, or by about 187,000 shares. Nothing is worse for a short-seller than being short a stock like JAZZ which is now trading at all-time highs.

Stock quotes in this article: GURE, CDE, JAZZ, ZIP, BEXP 

Select the service that is right for you!

COMPARE ALL SERVICES
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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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