Ocean Rig UDW
One final stock that's trading within range of triggering a big breakout is Ocean Rig UDW (ORIG), a Marshall Islands-registered international offshore drilling contractor. This stock is off to a monster start in 2012 with shares up over 40%.
If you look at the chart for Ocean Rig UDW, you'll notice that this stock bottomed in early 2012 at around $11.70 a share. Since marking that bottom, the stock has soared and up trended towards its current price of around $17.30. That big run-up now puts ORIG within range of breaking above two key technical overhead resistance levels. If that breakout does trigger soon, then it will push ORIG into all-time high territory.
Market players should now look for long-biased trades in ORIG if this stock can manage to take out some overhead resistance at $18.15 to $18.73 with high-volume. Look for a sustained high-volume move and close above those levels that are near or well above its three-month average action of 147,525 shares. If we get that action soon, then ORIG could easily spike above $20 a share very quickly.One could look to be a buyer of ORIG off any weakness and simply use a stop at around $16.50 to $16.36 a share, and simply anticipate the future breakout. You could also buy off strength and get long once $18.15 or $18.73 is taken out with volume. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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