This Day On The Street
Continue to site
ADVERTISEMENT
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 Breakout Stocks to Trade

Gran Tierra Energy

My final idea that's trending very close to breaking out is Gran Tierra Energy (GTE - Get Report), 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.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including
CNBC.com and Forbes.com . You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.
6 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
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
SYM TRADE IT LAST %CHG
GPRC $0.10 0.00%
ALJ $19.00 0.00%
GTE $2.89 0.00%
SAND $3.20 0.00%
UAL $51.50 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs