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

Collective Brands

One stock that's already starting to break out is Collective Brands (PSS), which is engaged in the wholesale and retail of footwear and related accessories worldwide. This stock has been hammered by the bears so far in 2011, with shares off by around 30%.

If you take a look at the chart for Collective Brands, you'll notice that this stock has been stuck in a sideways trading pattern for the last month, between $12 a share on the lower end and $14.41 on the higher end. Now the stock is starting to break out above $14.41 a share, which could be signaling that a much bigger move higher is coming. The next major overhead resistance levels that traders should keep an eye on are at $15.40 to $16 a share. If this breakout holds, and then the stock takes out those levels, it could then make a run at filling the May gap down in price that started at around $19 a share.

>>20 Highest-Yielding Retail Stocks

You could buy this stock off any weakness and anticipate the move into the May gap down. You could simply place a mental stop just below $13.50 in case this is a false breakout. You could also just wait until $15.40 to $16 a share is taken out to the upside and buy off that strength. Look for a strong volume move above those levels that's tracking in close to or above its three-month average action of 2.2 million shares.

This is a heavily shorted stock, with over 32% of the tradable float sold short by the bears. If we see a breakout in PSS soon, then look for this big short interest to play a part in pushing this stock significantly higher from current levels.

>>Practice your stock trading strategies and win cash in our stock game.

2 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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

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