This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Setting Up to Break Out

Stocks in this article: TSLA PETD FIO MAKO GALE

Petroleum Development

Another stock that's trading within range of a breakout is Petroleum Development (PTD), an independent natural gas and crude oil company that explores for and acquires, develops, produces and markets natural gas and crude oil resources. This stock is hasn't done much in 2012, with shares virtually flat on the year.

If you take a look at the chart for Petroleum Development, you'll see that this stock has been uptrending strong since the middle of January. During that uptrend, the stock has started to form a pattern of higher lows and higher highs, which is bullish price action. Now shares of Petroleum Development are within range of a potentially big breakout trade.

>>9 Gold, Oil Stocks That Rise on Bad News

Traders should watch PETD for a breakout trade if the stock can manage to take out $37.37 to $37.77 a share on heavy volume. Look for volume on a move above those levels that registers near or well above its three-month average action of 429,070 shares. A sustained high-volume move and close above those levels should set this stock up to re-test its next significant overhead resistance level at $39.50 a share, or possibly much higher into the mid-$40s.

Market players can look for long biased trades in PETD as the stock is trending above its 50-day moving average of $33.62. You can simply get long and anticipate the breakout trade, or you can just wait for the breakout trigger and buy off strength. One thing worth noting that the upside volume was huge on Thursday, so look for that pattern to continue of PETD makes a run at breaking out.

This is another breakout candidate that sports a large short interest. The current short interest as a percentage of the float for PETD is very high at 15.6%. If that breakout trigger soon, then look for the bears to cover some of their bets and help to push this stock much higher.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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