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

4 Stocks Poised to Break Out


One chemical manufacturing player that's trading within range of a major breakout trade is Amyris (AMRS - Get Report). This company is building and applying its industrial synthetic biology platform to provide alternatives to petroleum-sourced products used in specialty chemical and transportation fuel markets worldwide. This stock has been hammered by the sellers so far in 2012 with shares off by more than 70%.

If you take a look at the chart for Amyris, you'll see that this stock was downtrending hard from its February high of $10.56 to a recent low of $1.57 a share. During that massive move lower, shares of Amyris have consistently made lower highs and lower lows, which is bearish technical price action.

That said, after hitting that low of $1.57, shares of Amyris have now started to reverse that downtrend and are now making higher lows and higher highs, which is bullish price action. That move has now pushed Amyris within range of triggering a major breakout trade.

Traders should now look for long-biased traders in AMRS if it can manage to trigger a break out above some near-term overhead resistance at $3.49 to $3.53, and then above $3.89 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 675,555 shares. If we get that action soon, then AMRS could make a monster move back toward its next significant overhead resistance levels of $6 to $6.69 a share.

One could be a buyer of AMRS off weakness and anticipate the breakout with a stop at around $3 a share. One could also buy off strength and get long once $3.49 is taken out with high volume. If you buy off strength, then I would use a stop that's a few percentage points below $3.49 a share. I would then add to either position once AMRS takes out $3.89 with strong volume.

2 of 5

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
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
Only $49.95
14-Days Free
14-Days Free
AMRS $1.00 -0.99%
BCRX $3.26 -1.81%
BCOV $6.05 -7.49%
LIVE $1.60 -12.00%
WIFI $7.69 -1.16%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs