One breakout play in the basic materials complex is Owens Illinois (OI), a manufacturer of glass containers with 81 glass manufacturing plants in 21 countries. This stock has been beaten down in 2011, with shares off by over 35%.
If you take a look at the chart for Owens-Illinois, you'll notice that this stock was hammered down by the bears from its July high of $27.07 to a recent low of $13.43 a share. After hitting that low in early October, the stock has rebounded sharply to its current price of around $19.50 a share.
The stock now is quickly approaching a major breakout if it can manage to trade above some past overhead resistance at around $18.84 to $19.68 a share on solid volume. A high-volume move above those levels should set this stock up to make a run back towards some resistance at $24 a share or to its 200-day moving average of $25.96 a share.>>5 Rocket Stocks to Buy at End of October You could be a buyer of this stock off any noticeable weakness and anticipate the breakout, or you could just buy off strength once the breakout triggers. If you buy of weakness, simply place a stop just below the 50-day moving average of $17.25 a share. If you buy off strength, get long once $18.84 to $19.68 are challenged and taken out, and simple place a stop just below $18.84 a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV