Gran Tierra Energy
My final idea that's trending very close to breaking out is Gran Tierra Energy (GTE), which is an independent international energy company engaged in oil and gas acquisition, exploration, development and production. This stock is up modestly so far in 2012, with shares higher by 14%.
If you look at the chart for Gran Tierra Energy, you'll notice that this stock has been uptrending modestly for the last three months, with shares advancing from $4.23 to $5.75 a share. After hitting $5.75 a share, GTE has moved into a sideways trading pattern between $4.83 on the downside and $5.42 on the upside. This stock has just started to move back above both its 50-day at $5.09 and its 200-day at $5.29 with heavy upside volume. That move is also quickly pushing GTE within range of triggering a significant breakout trade.
Traders should now look for long-biased trades in GTE once it manages to take out some near-term overhead resistance levels at $5.42 to $5.75 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 527,406 shares. If that breakout triggers soon, then GTE will set up to re-test or possibly take out its next major overhead resistance levels at $6.40 to $6.70 a share. Any high-volume move above $6.65 would then put $7.27 to $7.70 into focus for GTE.One could look to buy GTE off any weakness to anticipate that breakout and then simply use a stop right around its 50-day at $5.09 a share. Traders can also just buy off strength once GTE takes out those breakout levels with volume and then simply use a stop right below its 200-day at $5.29 a share. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV