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 Stocks Poised for Breakouts

Tesla Motors

Another stock that's moving within range of triggering a big breakout trade is Tesla Motors (TSLA - Get Report), which designs, develops, manufactures and sells electric vehicles and electric vehicle powertrain components, including the Tesla Roadster, an electric sports car. This stock is off to a decent start in 2012 with shares up around 16%.

If you take a look at the chart for Tesla Motors, you'll see that this stock formed a double-bottom chart pattern a few months ago at $26.83 to $27.11 a share. After marking that bottom, shares of TSLA have started to uptrend strong hitting a recent high of $34.50 a share. During that uptrend, shares of TSLA have been making mostly higher lows and higher highs, which is bullish technical price action. This stock has also started to move into breakout territory, since it's cleared some near-term overhead resistance at $32.80 a share. That move is now pushing TSLA within range of an even bigger breakout trade.

>>5 Big Stocks Ready to Slingshot Higher

Market players should now look for long-biased traders in TSLA if this stock can manage to trigger a bigger breakout trade above some overhead resistance levels at $34.50 to $34.68 a share, and then above $35.75 a share with high-volume. Look for a sustained move or close above those levels with volume that's near or above its three-month average action of 1.2 million shares. If we get that action soon, then TSLA will have a great chance of re-testing and possibly taking out its recent highs of $38.47 to $39.95 a share.

One could buy TSLA off weakness to anticipate that breakout and simply use a stop just below the recent breakout level of $32.80 a share. If you buy off weakness, then I would add once TSLA clears those breakout levels mentioned above with high-volume. A higher probability trade would be to buy off strength once TSLA triggers that breakout, and then simply use a stop a few percentage points below $34.50 a share.

This stock is a favorite among the short-sellers. The current short interest as a percentage of the float for TSLA is a whopping 48.6%. This stock has some gigantic short-squeeze potential off any high-volume breakout. With that many shorts, TSLA could see some monster spikes higher if the stock can manage to clear some of those overhead resistance levels.
3 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
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
AMRN $1.83 0.00%
CERS $6.26 0.00%
CKEC $29.99 0.00%
SYN $2.23 0.00%
TSLA $240.76 0.00%


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