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


One stock that's trading within range of triggering a major breakout trade is ArQule (ARQL - Get Report), a clinical-stage biotechnology company engaged in the research and development of innovative cancer therapeutics. This stock has been hammered by the bear so far in 2012, with shares off by over 50%.

>>22 Biopharma Stocks With Breakout Potential in 2012

If you take a look at the chart for ArQule, you'll notice that this stock recently gapped down big from around $5 to a low of $1.98 a share with monster downside volume. Following that plunge, shares of ARQL have spiked higher and started to trend sideways between $2.92 and $2.45 a share A move outside of that sideways trading pattern to the upside could spark a major breakout trade for ARQL.

Traders should now look for long-biased trades in ARQL once it manages to break out above some near-term overhead resistance levels at $2.92 a share with high volume. Look for a sustained move or close above $2.92 a share with volume that hits near or above its three-month average action of 1,146,930 shares. If that breakout triggers soon, then ARQL will set up to re-fill some of that gap down zone. Some possible upside targets are $4 to $4.50 a share, and possibly even $5 to $5.75 a share.

Traders can look to buy ARQL off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $2.45 a share. One could also buy ARQL off strength once it takes out $2.92 with volume and then simply use a stop a few percentage points below that level.
2 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
ARQL $1.65 0.61%
BPI $6.51 2.04%
GEVO $0.36 -11.51%
PTN $0.54 -7.69%
OREX $1.74 -5.43%


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs