This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Stocks Setting Up to Break Out


One computer hardware player that's trading within range of a major breakout trade is Apple (AAPL - Get Report). This company, along with its subsidiaries, is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. This stock is off to a hot start in 2012 with shares up over 40%.

If you take a look at the chart for Apple, you'll see that this stock sold off recently from a high of $644 to a low of $522.18 a share. After tagging that low, Apple has started to resume its uptrend with the stock now making higher highs and higher lows for the past month and change. That move is quickly pushing Apple within range of triggering a near-term breakout trade. That trade will hit once Apple takes out some near-term overhead resistance with above average volume.

Market players should now look for long-biased traders in AAPL if it can manage to trigger a breakout above some near-term overhead resistance at $581.50, and then above its 50-day moving average of $583.14 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 22,968,500 shares. If we get that action soon, then Apple could easily hit $600 to $620 in the near future.

Look for confirmation of higher prices in AAPL as long as it can maintain a trend above its 50-day moving average of $538.14 a share with strong upside volume flows. I really can't get excited about Apple unless it's trending above the 50-day, since a failure to take that level out could mean that the sellers are taking control of the stock back.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
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!
ZUMZ $38.82 -0.05%
AAPL $128.46 -1.50%
AMZN $380.16 -1.21%
PSUN $2.79 2.20%
VTUS $13.51 -6.51%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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