This Day On The Street
Continue to site
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

5 Stocks Setting Up to Break Out

WINDERMERE, Fla. ( Stockpickr) -- U.S. stocks are trending lower today after a disappointing reading on U.S. consumer confidence kept buyers at bay who were initially bullish on hopes for a European Union pact on their sovereign debt problems.

The Conference Board's index of U.S. consumer confidence in January hit 61.1 from a revised 64.8 in December, which is well below the 68.0 reading that Wall Street analysts' were expecting.

At last check, the Dow Jones Industrial Average was trading lower by 54 points and the S&P 500 was off by around 4 points. The tech-heavy Nasdaq was trending down 6 points. Despite the weakness in equity markets today, all three major index are trading within range of some major breakout levels. For the Dow, that level is 12,841.95, and for the S&P 500, it sits at 1333.47. The key technical breakout level for the Nasdaq is 2834.30.

>>5 Rocket Stocks to Buy This Week

.If all three of the major indices break out soon, then we're going to see many sectors and stocks breakout and trade significantly higher. The shorts who have been betting against this market recently will help to fuel the move higher as they cover some of their positions. Being short a market or stock that's breaking out is rarely a good idea, since the breakout often leads to much higher prices.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

Here's a look at several stocks that are setting up to break out and trade higher from current levels.
1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
KIOR $0.01 -3.45%
AAPL $95.17 0.19%
CLSN $1.16 2.70%
HALO $7.47 2.60%
MA $83.77 2.20%


Chart of I:DJI
DOW 16,025.61 +11.23 0.07%
S&P 500 1,867.52 +15.31 0.83%
NASDAQ 4,334.5510 +65.7880 1.54%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs