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 Poised for Breakouts

Melco Crown Entertainment

One stock that's trading within range of a big breakout is casino player in the Chinese Macau market Melco Crown Entertainment (MPEL). This stock has been ripping higher so far in 2012, with shares up over 24%. That could be just the start of a much bigger move if the stock can manage to breakout in the near future.

If you take a look at the chart for Melco Crown Entertainment, you'll notice that this stock formed a double bottom a few months ago between $8.19 and $8.32 a share. After marking that bottom, the stock took off and trended higher toward its current price of around $12 a share. That move higher for MPEL was very strong, with shares making higher lows and higher highs consistently, which is bullish price action. Now the stock has started to consolidate and trade range-bound between $11 and $12.27 a share

Market players should now watch MPEL for a breakout trade to trigger once the stock takes out $12.27 to $12.40 a share on high volume. Look for volume on a move and close above those levels that registers near or well above its three-month average volume of 6 million shares. If we get that action soon, then this stock has an excellent chance to trade back towards its $14 to $16.15 (its 52-week high) in the very near future.

Traders should look for long-biased trades in MPEL if the stock does break out soon above those overhead resistance levels I mentioned. I would simply use a mental stop near the 200-day moving average of $11.21 if you buy off weakness. If you buy off strength, use a tight mental stop just below the breakout levels.

I also featured MPEL, which shows up on a list of 5 Casino Stocks to Bet On in 2012, in " 8 Stocks Rising on Monster Volume."

2 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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7870 -13.6380 -0.30%

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