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


A biopharmaceutical player that's trading within range of triggering a major breakout is Vivus (VVUS - Get Report), which is engaged in development and commercialization of therapeutic drugs for large underserved markets, including obesity and related morbidities, such as sleep apnea and diabetes and men's sexual health. This is one of the hottest stocks in 2012, with shares up over 120%.

If you take a look at the chart for Vivus, you'll notice that this stock has been trending within a range of around $18 to $25.14 a share for the past month. This range-bound trend is helpful because it will make it easier to identify the next major move for VVUS. That trend looks to be setting up for a move to the upside since the stock is currently within a shouting distance of making new highs.

>>5 Big Stocks to Trade for Gains

Traders should now look for long-biased trades if VVUS can manage to break out above Thursday's high of $23.75 and some near-term overhead resistance at $25.15 a share with high-volume. Look for volume off a sustained move and close above those levels that registers near or well above its three-month average action of 6.6 million shares.

If we get that action soon, then look for VVUS to make a big spike to the upside since the shorts will probably cover quickly with the stock making new 52-week highs. I would simply avoid this stock if that breakout never triggers with volume, or if VVUS breaks back below $19.55 to $18 with high volume. If those levels are ever lost on the downside then this stock could fill some of that huge gap up from back in February.

2 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
DNDN $0.06 -6.02%
BCEI $8.13 0.00%
HZNP $22.60 3.60%
TRIP $82.79 0.00%
VVUS $1.38 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs