This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Break-Out Stocks: The Search for Survivors

iShares Silver Trust

Another potential breakout trade could be setting up nicely for the iShares Silver Trust ETF (SLV). This is a grantor trust that is designed to provide a vehicle for investors to own interests in silver. The purpose of the trust is to own silver transferred to the trust in exchange for shares. This ETF is still up over 35% this year despite a massive drop a few months ago.

If you take a look at the chart for iShares Silver Trust, you'll see that this ETF has been making higher lows and higher highs since it hit a near-term bottom in June at $32.50 a share. Whenever a stock is showing a pattern like this, it can mean that large traders are buying any dip and paying up to have exposure to the stock. The SLV is now quickly approaching a big breakout if it can manage to trade above some near-term overhead resistance at around $42.78 a share.

A move above that level could mean that the SLV is setting up for a big run back toward its recent high of 48.35 a share. If the bears can't hold it back here on any test of that breakout level, then the SLV could squeeze the bears who're short this ETF. The shorts could easily get persuaded to cover some bearish bets if the SLV sees a volume move through $42.78 a share.

I would look to buy the SLV if it clears $42.78 on strong volume that tracks in close to or well above its three-month average action of 36.8 million shares. Another great way to play an SLV breakout is to buy some call options on the ProShares Ultra Silver (AGQ) since this trading vehicle moves twice the daily perfume of silver. That trade is more risky but will have a bigger reward if the silver breaks out here. Either way, make sure you manage your trades with tight stops in case any future breakout in silver is a false move.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 16,774.25 +96.35 0.58%
S&P 500 1,960.19 +9.37 0.48%
NASDAQ 4,470.2130 +17.4210 0.39%

Brokerage Partners

Rates from Bankrate.com

  • 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