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: ISRG NOV ELN TNP ORIG

Elan

One stock in the biotechnology and drugs complex that's just starting to trigger a breakout trade today is Elan (ELN), a neuroscience-based biotechnology company. Elan is focused on discovering and developing advanced therapies in neurodegenerative and autoimmune diseases. This stock hasn't done much in 2012, with shares up just 7.5%.

A Jefferies analyst today light a fire under this stock after they said the stock should start moving ahead of bapi data. Those comments have pushed shares of Elan into new 52-week-high territory.

If you look at the chart for Elan, you'll see that this stock has been trading range bound for the past few months, between $14.40 on the upside and around $12 on the downside. Now just today shares of ELN are starting to break out above that near-term overhead resistance at $14.40 with monster volume.

>>6 Hot Stocks on Traders' Radars

At last check, volume today is already over 5.1 million shares which is well above its three-month average action of 3.36 million shares. Volume on Thursday (also up day) was also huge with 6.73 million shares traded.

Traders should now watch ELN for a sustained high-volume move and close above $14.40 a share to signal that this stock wants to trend significantly higher. I would also look for ELN to close near its daily highs today as a sign of strength. If we get that action today or soon, then look for ELN to make a run at $20 a share or possibly much higher.

Traders should now look for long biased trades in ELN as long as the stock is trending above that key breakout level of $14.40 a share. I would simply use a mental stop that's a few percentage points below $14.40 if you get long into this strength, in case this breakout fails.

4 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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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