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


Another name in the biotechnology and drugs complex that's within range of triggering a breakout trade is Dendreon (DNDN), which is focused on the discovery, development and commercialization of therapeutics that may improve cancer treatment options for patients. This stock has been ripping so far in 2012, with shares up over 35%.

If you look at the chart for Dendreon, you'll see that this stock plunged big from its February high of $17.04 a share to a recent low of $9.05 with heavy volume. Following that huge drop, shares of DNDN have now started to uptrend slightly and make higher lows. The stock is now trading within range of triggering a near-term breakout trade.

>>5 Stocks Insiders Love Right Now

Traders should now look for long biased trades in DNDN if this stock can manage to take out some near-term overhead resistance at $10.74 with volume. Look for volume on a move above that level that's near or well above its three-month average action of 11 million shares. At last check, volume today is over 3 million and the stock has hit a daily high of $10.74 a share.

If that breakout triggers soon, then look for DNDN to re-test its 50-day moving average of $12.43 a share, or possibly hit its 200-day moving average of $15.44 a share. Look for a sustained high-volume move and close above $10.74 to signal that DNDN has a chance to spike big. I would simply avoid any long trades on DNDN if that breakout never hits or if shares drop below some near-term support at $10 to $9.72 a share with high volume.

5 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
BCEI $3.04 -13.00%
DNDN $0.06 -6.02%
HZNP $15.10 -1.40%
TRIP $64.14 -1.20%
VVUS $1.58 0.00%


Chart of I:DJI
DOW 17,706.84 -184.32 -1.03%
S&P 500 2,060.81 -20.62 -0.99%
NASDAQ 4,767.9820 -49.6120 -1.03%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs