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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Setting Up to Break Out

Stocks in this article: AAPL ZUMZ PSUN AMZN VTUS DGIT


Another stock that's trading within range of a major breakout trade is retail player Zumiez (ZUMZ). This company is a specialty retailer of action-sports-related apparel, footwear, equipment and accessories operating under the Zumiez brand name. This stock is off to a strong start in 2012 with shares up around 35%.

If you take a look at the chart for Zumiez, you'll notice that this stock has been uptrending strong for the last six months, with shares soaring from $22.57 to a recent high of $38.99 a share. During that monster move to the upside, shares of Zumiez have consistently made higher lows and higher highs, which is bullish technical price action. That bullish trend for Zumiez has now pushed the stock within range of triggering a major breakout trade.

Market players should now look for long-biased traders in ZUMZ if it can manage to trigger a near-term breakout trade above some overhead resistance at $37.71 to $38.99 a share with high volume. Look for a sustained move or close above those levels with volume that registers close to or above its three-month average action of 417,069 shares. If we get that action soon, then ZUMZ will enter new 52-week high territory. That could easily push the stock north of $40 towards $50 a share very quickly.

I would look to play that breakout for ZUMZ if it hits once the stock clears $37.71 to $38.99 with high volume, and simply use a stop a few percentage points below that level. I would completely avoid any long trades on ZUMZ if it fails to trigger that move and then drops back below its 50-day moving average of $35.76 with heavy volume.

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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