This Day On The Street
Continue to site
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

5 Stocks Setting Up to Break Out

WINDERMERE, Fla. ( Stockpickr) -- U.S. stocks soared on Thursday after positive data came out of China and the debt-burdened countries in Europe.

China's central bank surprised the market after it reported a jump in loans for March. Market players viewed that news as a positive since many were worried that China's economy was starting to lose some of its feverish growth.

Debt worries in Europe took a day off after Italy had no issues in selling $6.4 billion in government debt. That successful sale helped rates in Italy fall, and European stocks to reverse course and trend higher after opening up in the red.

>>5 Big Stocks to Trade for Gains

The Dow Jones Industrial Average finished up 181 points and the S&P 500 added 18 points. The tech-heavy Nasdaq exploded higher by 39 points. All three of these U.S. indices are now trading above or very close to their 50-day moving averages. If they all can continue to trend above their 50-days, we could easily see the market continue to extend its gains from Thursday. That said, any selloff for all three back below their 50-days will put any future rallies into serious jeopardy.

If we do see all three indices trending above their 50-days, then we are going to see a ton of stocks trigger major breakout trades. Trend traders who look for breakouts know that market is always serving up stocks that are ready to move and explode higher.

Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher.

With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.

1 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
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
Submit an article to us!
SYM TRADE IT LAST %CHG
LNKD $199.72 -1.80%
NQ $3.67 -3.70%
TESO $12.40 -1.20%
MKTG $0.00 0.00%
AAPL $125.85 -2.20%

Markets

DOW 17,928.20 -142.20 -0.79%
S&P 500 2,089.46 -25.03 -1.18%
NASDAQ 4,939.3270 -77.6020 -1.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs