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: VVUS HZNP DNDN BCEI TRIP

Horizon Pharma

One stock in the biotechnology and drugs complex that's starting to flirt with a major breakout trade is Horizon Pharma (HZNP), which develops and commercializes medicines to target unmet therapeutic needs in arthritis, pain and inflammatory diseases. This stock hasn't done much in 2012, with shares virtually flat on the year.

If you look at the chart for Horizon Pharma, you'll notice that this stock was stock in a nasty downtrend from its November high of $8.98 to a recent low of $3.05 a share. During that downtrend, shares of HZNP consistently made lower highs and lower lows, which is bearish price action. That said, the stock has now started to trend sideways for the past month, and it's been making higher lows and higher highs, which could be indicating the start of a bullish trend change.

>>5 Rocket Stocks Worth Buying

Traders should continue to look for long biased trades in HZNP if this stock can manage to stay above its 50-day moving average of $3.70, and if it can trigger a near-term breakout above $4.10 a share with volume. Look for volume on that move that's near or well above its three-month average action of 58,115 shares. At last check, volume today is big with over 475,000 shares traded and HZNP has hit a daily high of $4.21.

As long as HZNP is trending above $4.10 with strong upside volume flows, then this stock should setup to trade back towards its next significant overhead resistance levels at $4.50 to $5.40 a share. Since the upside volume was strong yesterday and is today, then the probably if this stock spike big is high on a close over $4.10 and near its daily highs.

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 18,053.71 +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