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


Another stock that is worth watching for a breakout is AuthenTec (AUTH), a provider of security, identity management and touch control technologies for personal computer, wireless device and information technology markets. This stock is trending hot in 2011, with shares up over 60%.

If you take a look at the chart for AuthenTec, you'll notice that this stock has been uptrending strong for the past couple of months after buyers stepped in big to support it near $2.15 to $2.33 a share. This stock has been making higher highs and higher lows as it has trended from $2.15 to its current price of around $4 a share, which is bullish. This bullish action now sets up AUTH for a big breakout and volume is tracking in very strong. Four recent upside volume days have registered north of 700,000 shares, which is well above its three-month average volume of 257,000 shares.

>>5 Under-$10 Stocks With Big Upside Potential

Market players should now watch for this stock to trade and close above some major overhead resistance at around $4.16 a share with strong volume. A high-volume move above that level will push this stock into breakout territory and will trigger a new 52-week high. The next overhead resistance levels after that don't really come into play until $6 a share and higher.

One could be a buyer of this stock off any weakness and simply use a mental stop near $3.50 a share and anticipate the breakout. Or you could buy off strength and get long once you see a big volume move over $4.16 trigger. Simply use a mental stop a few percentage points below $4.16 if you get long once the breakout hits.

3 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 17,296.90 +30.91 0.18%
S&P 500 2,010.39 -0.97 -0.05%
NASDAQ 4,575.8820 -17.5430 -0.38%

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