This Day On The Street
Continue to site
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 Stocks About to Burst

Traders can look to buy ZIP off any weakness as long as it's trending within range of its 50-day moving average of $7.26 a share. One can also buy off strength once ZIP takes out $8.64 to $8.69 a share and then simply use a stop close to $8 to $7.84 a share.

Keep in mind that this is a heavily-shorted stock, since the current short interest as a percentage of the float for ZIP is 23.9%. The bears have also been increasing their bets from the last reporting period by 5.6%, or by around 330,000 shares. If that breakout hits soon, then ZIP could easily see a monster short-squeeze as the bears rush to cover some of their short positions.

Ariad Pharmaceuticals

My final idea that's trending very close to a near-term breakout trade is Ariad Pharmaceuticals (ARIA - Get Report), which is engaged in the discovery and development of breakthrough medicines to treat cancers by regulating cell signaling with small molecules. This stock has been on an absolute tear so far in 2012, with shares up a whopping 79%.

If you look at the chart for Ariad Pharmaceuticals, you'll notice that this stock formed a double top back in October at $25.39 to $25.40 a share. After hitting selling resistance at those levels, shares of ARIA dropped sharply to its recent low of $19.30 a share. Despite that drop, shares of ARIA never violated its 200-day moving average at $18.60 a share and the stock has rebounded back to right below its 50-day moving average of $22.71 a share. That move has now pushed ARIA within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ARIA once it manages to take out some near-term overhead resistance levels at $22.03 to $22.41 a share, and then once it takes out its 50-day at $22.71 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 2,116,890 shares. If that breakout triggers soon, then ARIA will set up to re-test or possibly take out its next major overhead resistance levels at $25 to $25.40 a share.
5 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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
AEGR $2.97 0.68%
ARIA $7.16 -0.76%
CROX $8.65 -1.50%
IQNT $17.12 4.70%
AAPL $95.03 -2.90%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs