This Day On The Street
Continue to site right-arrow
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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

5 Stocks Setting Up to Break Out

Stocks in this article: LMOSACHNCIGXCRAYBRLIOSIR

Lumos Networks

One communications services player that's trading within range of a near-term breakout trade is Lumos Networks (LMOS), a fiber-based service provider in the Mid-Atlantic region. The company provides data, broadband, voice and Internet protocol services over fiber optic network. This stock is off to a bearish start in 2012, with shares off by over 30%.

If you take a look at the chart for Lumos Networks, you'll see that this stock was stuck in a nasty downtrend from the start of this year until May. During that downtrend, shares of Lumos Networks plunged from a high of $17.32 to a recent low of $7.65 a share. As this stock made that large plunge, shares of Lumos Networks consistently made lower highs and lower lows, which is bearish technical price action. That said, this stock has stopped that downtrend for the past two months, with shares making higher lows and now trading into position to trigger a breakout trade.

>>5 Tech Stocks to Watch if QE3 Happens

Traders should now look for long-biased traders in LMOS if it can manage to trigger a break out above some near-term overhead resistance at $10.40 a share with high-volume. Look for a sustained move or close above $10.40 with volume that hits near or above its three-month average action of 80,686 shares. If we get that action soon, then LMOS could easily spike higher towards $12 to $14 a share in the near future.

One could be a buyer of LMOS once it takes out $10.40 with volume, and then stay with the trade if it maintains a trend above that level. This stock saw heavy volume buying on Thursday, after shares closed up around 10% and volume finished at 162,700 shares traded. Look for a continuation pattern of strong upside volume for LMOS if it triggers that breakout soon.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • 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