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TheStreet Open House

5 Breakout Stocks to Eye for a Buy India

Another stock in the computer services complex that's nearing a big breakout is India (REDF). This company, along with its subsidiaries, is engaged in the business of providing online Internet-based services, focusing on India and the global Indian community. This is another stock that's off to blazing start in 2012 with shares up over 17% so far.

If you look at the chart for India, you'll notice this stock has found some big buying support in the past few months at around $7.11 to $7.37 a share. After that buying interest swept in, shares of REDF started to uptrend, and it's now challenging a move back above its 200-day moving average of $9.06 a share. If that level can get taken out along with some near-term overhead resistance, then REDF could easily breakout and spike significantly higher.

Market players should now watch REDF for a sustained high-volume move and close above $9.06 and $9.25 a share. Look for a volume that's near or above its three-month average action of 460,685 shares. If we get that action, then I would look for REDF to re-test $10.50 to $11.20 a share, or possibly much higher.

Keep in mind that REDF will report earnings on January 25 before the market opens. Regardless of that upcoming news event, I would still look to play this breakout for a trade going into next week. This stock could easily spike up towards $11.20 before their numbers are released.

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