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
TheStreet Open House

5 Stocks Poised for Breakouts

Cambrex

One stock in the biotechnology and drugs complex that's already starting to enter breakout territory is Cambrex (CBM), a life sciences company that provides essential products and services to accelerate drug discovery, development and manufacturing processes for human therapeutics. This stock has been blazing a path to the upside so far in 2012, with shares up over 85%.

>>4 Big Stocks to Trade (or Not)

If you take a look at the chart for Cambrex, you'll notice that this stock has been trending sideways for the last two months, with shares moving between $11.60 on the downside and $13.77 on the upside. As CBM has trended sideways, the stock has managed to hold above its 50-day moving average. A move outside of that sideways range will likely setup the next major trend for CBM.

Traders should now look for long-biased trades in CBM once it manages to break out above some near-term overhead resistance at $13.77 a share with high volume. Look for a sustained move or close above $13.77 with volume that hits near or above its three-month average action of 261,283 shares. If that breakout triggers soon, then CBM will have a great chance of re-testing or possibly taking out its next major overhead resistance at around $24 a share.

Traders can look to buy CBM off any weakness to anticipate that breakout, and simply use a stop that sits right below its 50-day moving average of $12.29 a share.

Take-Two Interactive Software

Another stock in the that's setting up for a near-term breakout trade is Take-Two Interactive Software (TTWO), a developer, marketer and publisher of interactive entertainment for consumers around the globe. This stock is off to a weak start in 2012, with shares down by around 18%.

>>5 Toxic Tech Stocks to Sell Now

If you take a look at the chart for Take-Two Interactive Software, you'll see that this stock has also been trending sideways for the last month and change, with shares moving between $9.86 on the downside and $11.36 on the upside. During that timeframe, shares of TTWO have been able to hold its trend above its 50-day moving average. A move outside of that range for TTWO will likely setup the next major trend for the stock.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • 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