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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Ready to Break Out

Corinthian Colleges

One stock that's moving within range of triggering a near-term breakout trade is post-secondary education company Corinthian Colleges (COCO), which offers various diploma programs, as well as associates, bachelors, and master' degrees. This stock has been trending moderately bullish so far in 2012, with shares up 20%.

If you take a look at the chart for Corinthian Colleges, you'll notice that this stock hit a low in August of $1.74 and has been uptrending ever since to its recent high of $2.94 a share. During that uptrend, shares of COCO have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed COCO within range of triggering a near-term breakout trade.

>>8 Stocks With Big Dividends, Steady Returns

Traders should now look for long-biased trades in COCO once it manages to break out above some near-term overhead resistance levels at $2.73 to $2.94, and then once it takes out its 200-day moving average of $3.12 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 804,482 shares. If that breakout triggers soon, then COCO will setup to re-test and possibly take out its next major overhead resistance levels at $3.44 to $4 a share.

Traders can look to buy COCO off any weakness to anticipate that breakout, and simply use a stop that sits right below its 50-day moving average of $2.41 a share. I would add to any long positions once COC takes out $2.73 to $3.12 with volume, and add again over $3.44 a share.

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