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

Mitek Systems

Another stock in the technology complex that's trading within range of triggering a near-term breakout trade is Mitek Systems (MITK - Get Report), which is engaged in the development, sale and service of software solutions related to mobile imaging applications and intelligent recognition software. This stock has been hammered by the bears so far in 2012, with shares down by over 35%.

If you take a look at the chart for Mitek Systems, you'll see that this stock recently failed to trigger a breakout above some near-term overhead resistance levels at $4.38 to $4.75 a share. After failing to take those levels out, the stock sold off hard and took out its 50-day moving average. Following that move, shares of Mitek Systems found some buying interest at around $2.72 a share, and then ripped back above its 50-day moving average with heavy volume. Now the stock has started to take out $4.38 a share, and it's quickly setting up to clear $4.75 a share.

>>10 Top-Rated Tech Stocks Paying Big Dividends

Market players should now look for long-biased traders in MITK if this stock can manage to trigger a breakout trade above some overhead resistance levels at $4.75 a share with high volume. Look for a sustained move or close above $4.75 with volume that registers near or above its three-month average action of 918,274 shares. If we get that action soon, then MITK will have a great chance of filling a previous gap that send the stock down from over $6 to under $3 a share. Some upside targets are $6.30 to possibly even its 200-day moving average of $7.08 a share.

You can look to buy MITK off any weakness to anticipate that breakout and simply use a stop somewhere around $4 a share. A better way to play this is to buy off strength once MITK takes out $4.75 with high volume. Place a stop just below $4.38 a share if you buy MITK off strength.
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

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
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
GTIV $19.19 -1.18%
AAPL $93.74 0.00%
MITK $7.40 0.00%
MXWL $6.42 0.00%
UEC $0.81 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