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

Orexigen Therapeutics

Yet another stock in the biotechnology and drugs complex that's trading within range of triggering a near-term breakout trade is Orexigen Therapeutics (OREX), which is focused on the development of pharmaceutical product candidates for the treatment of obesity. This stock has been a favorite name for the bulls, with shares up over 260% so far in 2012.

If you look at the chart for Orexigen Therapeutics, you'll see that this stock has been uptrending very strong for the last three months, with shares soaring from a low of $3.76 to its recent high of $6.49 a share. During that uptrend, shares of OREX have been consistently making higher lows and higher highs, which is bullish technical price action. The stock has also just started to bounce right off its 50-day at $5.41 a share, and it's quickly moving within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in OREX if it can manage to break out above some near-term overhead resistance at $6.49 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average volume of 2.2 million shares. If that breakout triggers soon, then OREX will set up to re-test or possibly take out its next major overhead resistance level at $7.73 a share. Any high-volume move above $7.73 will put $8 to $10 a share into focus for OREX.

Traders can look to buy OREX off weakness as long as it's trending within range of its 50-day at $5.41 a share. Simply use a stop a few percentage points below its 50-day, possibly down near $5 a share. One can also buy off strength once OREX takes out $6.59 with volume and then simply use a stop at around $6 a share. I would look to add to either position once OREX clears $7.73 with high volume.

5 of 6

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 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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