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 Poised for Breakouts

Stocks in this article: SVNT SKUL AUMN XNPT ANR ZLCS


Another stock that's trading within range of triggering a near-term breakout trade is Skullcandy (SKUL), which develops and distributes headphones and other audio accessories to retailers throughout the U.S. and to distributors in various countries worldwide. This stock is off to a strong start in 2012, with shares up over 25% so far.

If you take a look at the chart for Skullcandy, you'll see that this stock has been uptrending very strong for the past three months, with shares trending higher from $11.92 to its current price of around $15.80 a share. During that uptrend, shares of SKUL have been consistently making higher lows and higher highs, which is bullish technical price action. Also in just the past couple of weeks, the upside volume for SKUL has started to expand dramatically above its three-month average volume. That recent uptrend has now pushed SKUL within range of triggering a breakout trade.

Traders should now look for long-biased traders in SKUL if this stock can manage to trigger a breakout trade above some key overhead resistance levels at $16.10 to $16.80 a share, and then above $17.76 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 volume of 479,467 shares. If SKUL manages to clear all of those levels soon, then this stock could be setting up to explode higher and take out its next major overhead resistance level at $19.75 a share.

>>4 Tech Stocks to Trade (or Not)

One can look to buy SKUL off any weakness to anticipate that breakout, and simply use a stop near its 200-day moving average of $14.52 a share. Or one could just buy off strength and get long once SKUL clears $16.10 to $16.80 a share, and then add over $17.76 a share, with a stop just below today's low of $15.41 a share.

This stock has explosive upside potential because once again it's another name the short-sellers are heavily involved in. The current short interest as a percentage of the float for SKUL is extremely high at 71.9%. That's a massive amount of bears in a stock that has only 15.07 million shares available for trading. If SKUL continues to uptrend, then the shorts are going to be pressured more than ever to cover their positions and cut their losses.

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