This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Setting Up to Break Out

Stocks in this article: DRRX CORT DECK VRSN CYTX Z

Deckers Outdoor

Another stock that's trading within range of triggering a near-term breakout trade is Deckers Outdoor (DECK), a designer, producer, marketer and brand manager of innovative, high-quality footwear and accessories. This stock has been in a decent uptrend for the last three months, with shares up 14%.

If you look at the chart for Deckers Outdoor, you'll see that this stock has been finding buyers over the last month and change any time it's traded down towards its 50-day moving average. Shares of DECK are now bouncing strongly off its 50-day of $37.23 a share and its quickly moving within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in DECK if it manages to break out above some near-term overhead resistance levels at $41 to $41.93 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 action of 2.5 million shares. If that breakout triggers soon, then DECK will set up to re-test or possibly take out its next major overhead resistance levels at $44.16 to its 200-day moving average at $44.36 a share. Any high-volume move back above $44.36 will then put $46 to $49.61 into range for shares of DECK.

Traders can look to buy DECK off any weakness to anticipate that breakout and simply use a stop that sits close to its 50-day moving average of $37.23 a share. One can also buy off strength once DECK clears those breakout levels with volume and then use a stop that sits just below $40 to $39 a share.

This stock is a favorite target of the bears, since its current short interest as a percentage of its float is a whopping 44.8%. If DECK triggers that breakout soon, then this stock could explode higher due to its high short interest.

4 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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