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 Poised for Breakouts

Stocks in this article: OCZ NKTR ACRX NGVC TSYS APRI

Apricus Biosciences

My final idea today for a near-term breakout trade is Apricus Biosciences (APRI), which is a hybrid specialty pharmaceutical company in the areas of oncology, sexual dysfunction, autoimmune and anti-infectives, among others. This stock has been ripping higher so far in 2013, with shares up an impressive 42.7%.

If you look at the chart for Apricus Biosciences, you'll notice that this stock has been uptrending strong for the last month, with shares spiking higher from its low of $1.95 to its recent high of $2.97 a share. During that uptrend, shares of APRI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has just started to push shares of APRI back above its 200-day moving average of $2.77 and it's quickly pushing the stock within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in APRI once it manages to take out some near-term overhead resistance levels at $2.97 to $3.18 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 volume of 144,045 shares. If that breakout triggers soon, then APRI will set up to re-test or possibly take out its next major overhead resistance levels at $3.45 to $3.48 a share and at $3.51 to $3.67 a share. Any high-volume move above $4 a share will then give APRI a chance to re-fill some of its previous gap down zone from last February that started at around $5 a share.

One could look to buy APRI off any weakness to anticipate that breakout and then simply use a stop that sits right around some key near-term support levels at $2.50 to $2.40 a share. Traders can also look to buy APRI off strength once it takes out those breakout levels with volume and then simply use a stop that sits right below its 200-day moving average of $2.19 a share.

This is another stock with short-squeeze potential off that breakout, since the current short interest as a percentage of the float for APRI is pretty high at 10%. Look for a solid short-covering rally to ensue if APRI triggers that breakout soon.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

6 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