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TheStreet Open House

5 Stocks Poised for Breakouts

Stocks in this article: TGBCGRKCGUBNTHTZROSG

Taseko Mines

One stock that looks poised to trigger a major breakout soon is Taseko Mines (TGB), which is focused on the production of copper and molybdenum from the Gibraltar mine and on permitting the New Prosperity gold and copper project. This stock has been beaten down by the sellers during the last six months, with shares off by over 30%.

If you take a look at the chart for Taseko Mines, you'll notice that this stock has formed a major bottoming chart pattern over the last three months, with shares finding buying interest whenever its traded down to $2.45 to $2.46 a share. Following that double bottom chart pattern, shares of TBG have started to uptrend back above its 50-day moving average of $2.65 a share with decent volume. That move has now pushed TGB within range of triggering a near-term breakout trade.

>>5 Stocks Under $10 Set to Soar

Traders should now look for long-biased traders in TGB once it manages to break out above some overhead resistance levels at $2.87 to $2.89 a share, and then above $3.05 to $3.06 a share with high volume. Look for a sustained move or close above all of those levels with volume that hits near or above its three-month average action of 376,995 shares. Keep in mind that a move over $3.06 will mean that TGB has cleared its 200-day moving average, which is a key technical level. If that breakout triggers soon, then TGB has a great chance of trending higher back towards its next significant overhead resistance levels at $3.60 to $4.30 a share.

One could look to buy TGB off any weakness and simply anticipate that breakout, with a stop somewhere near $2.65 to $2.45 a share. One could also just buy off strength once TGB clears those breakout levels with high volume, and then simply use a stop at around $2.80 to $2.60 a share, or even tighter.

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