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 Breakout Stock Plays: Must-See Charts

Noah

One name that's trending very close to triggering a major breakout trade is Noah (NOAH), a service provider focusing on distributing wealth management products to the high net worth population in the People's Republic of China. This stock is down notably so far in 2012, with shares off by 14%.

The chart for Noah shows this stock has been uptrending very strong for the last month and change, with shares moving from a low of $4.25 to its recent high of $5.29 a share. During that uptrend, shares of NOAH have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NOAH within range of triggering a major breakout trade.

Market players should now look for long-biased trades in NOAH once it manages to break out above some past overhead resistance at $5.45, and then once it takes out its 200-day moving average of $5.82 a share with volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 29,578 shares. If that breakout triggers soon, then NOAH will set up to re-test or possibly take out its next significant overhead resistance levels at $7 to $8 a share.

One can look to buy NOAH off any weakness to anticipate that breakout and simply use a stop that sits right around its 50-day moving average of $4.78 a share. Traders can also buy off strength once NOAH clears $5.45 to $5.82 a share with high volume and then use a stop just below $5.35 a share.

Idenix Pharmaceuticals

Another stock that's quickly pushing into range of triggering a near-term breakout trade is Idenix Pharmaceuticals (IDIX). This company is engaged in the discovery and development of drugs for the treatment of human viral diseases with operations in the U.S. and Europe. This stock has been a favorite target of the bears, with shares down by close to 35% so far in 2012.

The chart for Idenix Pharmaceuticals shows this stock had been downtrending badly from July to early November, with shares plunging from a high of $11.30 to a recent low of $3.35 a share. During that downtrend, shares of IDIX consistently made lower highs and lower lows, which is bearish technical price action. That said, shares of IDIX have just started to come off that $3.35 low and break back above its 50-day moving average of $4.54 a share with heavy upside volume. That move is now pushing IDIX within range of triggering a near-term breakout trade.

3 of 5

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 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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