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
TheStreet Open House

5 Stocks Setting Up to Break Out

Stocks in this article: DRRXCORTDECKVRSNCYTXZ

VeriSign

Another stock that looks poised to trigger a breakout trade here is VeriSign (VRSN), a provider of Internet infrastructure services for the networked world. This stock is down notably over the last three months, with shares off by 9.9%.

This company just reported earnings where it met Wall Street expectations on revenues and beat expectations on earnings per share. This news could provide a catalyst that sends shares of VRSN significantly higher from current levels. Volume today has already hit 4.1 million shares, which is just below its three-month average action of 5.3 million shares, and the stock up 4.9% to $41.96.

If you look at the chart for VeriSign, you'll notice that this stock has been uptrending strong for the last two months, with shares soaring from its low of $32.81 to its intraday high of 42.95 a share. During that uptrend, shares of VRSN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of VRSN within range of triggering a major breakout trade.

Traders should now look for long-biased trades in VRSN if it manages to break out above some near-term overhead resistance at $43.55 a share with high volume. Look for a sustained move or close above $43.55 a share with volume that registers near or above its three-month average action of 5.3 million shares. If that breakout triggers soon, then VRSN will set up to re-fill some of its previous gap down zone from last October that started near $47 a share.

Traders can look to buy VRSN off any weakness to anticipate that breakout and then simply use a stop that sits right below today's low of $40.63 a share. One can also buy VRSN off strength once it takes out $43.55 a share with volume and then simply use a stop that sits just below its 200-day moving average of $42.63 a share.

5 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!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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