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.
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