This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

5 Breakout Candidates to Trade


Another stock that's just starting to flirt with a major breakout trade is Bankrate (RATE - Get Report), which owns and operates Internet-based consumer banking and personal finance network. This stock has been pummeled by sellers so far in 2012, with shares off by close to 50%.

If you take a look at the chart for Bankrate, you'll notice that this stock recently gapped down huge from over $14 to a recent low of $10.27 with massive volume. Following that sharp move lower, shares of RATE have started to rebound and find buyers at around $10.50 a share. That rebound is coming off of extremely oversold levels since its current relative strength index (RSI) reading is 23.84. The recent action in Bankrate is quickly pushing the stock within range of breaking out above its gap down day high.

Market players should now look for long-biased trades once it manages to break out above its gap down day high of $11.26 a share with high volume. Look for a sustained move or close above $11.26 with volume that hits close to or above its three-month average action of 658,913 shares. If that breakout triggers soon, then RATE will set up to re-fill some of its gap down zone that started near $14 a share. At last check, Bankrate has hit an intraday high of $11.49 but volume is light with around 106,000 shares traded.

One can look to buy RATE off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $10.56 a share. One could also buy off strength once RATE triggers that breakout above $11.26 to $11.49 and then simply use a stop just below $11 a share.

3 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
MSPD $0.00 0.00%
RATE $12.76 0.00%
SLCA $32.41 0.00%
SEM $13.56 0.00%
TBI $23.01 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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