This Day On The Street
Continue to site right-arrow
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 Poised for Breakouts

AcelRx Pharmaceuticals

Another stock that's trending within range of triggering a major breakout trade is AcelRx Pharmaceuticals (ACRX - Get Report), a U.S.-based pharmaceutical company that develops and commercializes therapies for the treatment of pain. This stock has been blazing a trail to the upside so far in 2013, with shares up a whopping 24%.

If you take a look at the chart for AcelRx Pharmaceuticals, you'll see that this stock has been uptrending very strong for the last two months, with shares soaring higher from its low of $3.30 to its recent high of $5.83 a share. During that uptrend, shares of ACRX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ACRX within range of triggering a major breakout trade that would push the stock to new all-time highs.

Market players should now look for long-biased trades in ACRX if it manages to break out above some near-term overhead resistance levels at $5.63 to $5.83 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 330,884 shares. If that breakout triggers soon, then ACRX will set up to enter new all-time highs, which is extremely bullish technical price action. This means that the stock will have no more overhead resistance levels to contend with. Some possible upside targets off that breakout are $8 to possible even $10 a share.

Traders can look to buy ACRX off any weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of $4.41 a share. One could also buy off strength once ACRX clears those breakout levels with volume and then simply use a stop right around some key near-term support levels at $5.10 to $4.82 a share.

This is another name that's popular among the short-sellers, since the current short interest as a percentage of the float for ACRX stands at 9.6%. The worst possible case for the bears is being short a stock that's printing new all-time highs. That means that every one of them is losing money, which is never a successful venture in the markets. Look for a monster short-squeeze if ACRX can breakout and trend into all-time territory with volume.

3 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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

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
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!
ACRX $3.87 2.11%
APRI $1.92 -0.26%
NGVC $26.69 -0.82%
NKTR $10.92 -0.91%
TSYS $3.61 3.14%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

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