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 Breakout Trades From the Eurozone

Ericsson Telephone

It's been a rough year for shareholders of Ericsson Telephone (ERIC - Get Report) -- shares of the Swedish communications firm have fallen close to 30% in the last year as telecom stocks struggled to regain share of the increasingly concentrated communications equipment market. Again, even though Sweden isn't in the eurozone (its currency is the krona), massive corporate exposure to the euro and exchange mechanisms mean that Ericsson has the attributes we're looking for in these setups.

After ERIC's dramatic fall in the trailing 12 months, shares of the company have been stuck trading sideways in a consolidation channel. While that's been a frustrating scenario for Ericsson shareholders, it does provide traders with an actionable setup right now.

Currently, Ericsson is forming an if/then trade as it bounces in between horizontal resistance at $10.50 and horizontal support at $9. We're looking for a break outside that channel to provide a direction for ERIC's shares. Here's how it works: if ERIC breaks out above $10.50, then we've got a buy signal. Otherwise, if shares fall below $9 support, then ERIC becomes a short candidate.

Until one of those two conditions get met, I'd recommend staying away from this stock.

Ericsson showed up on a list of 6 Tech Stocks to Avoid in 2012.
4 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
ACE $0.00 0.00%
DB $17.38 0.00%
ERIC $8.71 0.00%
LYB $76.46 0.00%
NXPI $67.30 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs