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 Ready to Break Out

Oxygen Biotherapeutics

Another stock that's moving within range of triggering a major breakout trade is Oxygen Biotherapeutics (OXBT), which is engaged in the business of developing biotechnology products with a focus on oxygen delivery to tissue. This stock has been destroyed by the sellers so far in 2013, with shares off by 58%.

If you look at the chart for OXBT, you'll notice that this stock has been downtrending badly for the last month and change, with shares dropping from its high of 80 cents per share to its recent low of 25 cents per share. During that downtrend, shares of OXBT have been consistently making lower highs and lower lows, which is bearish technical price action. That move has pushed OXBT into oversold territory, since its current relative strength index reading is 28.24. Oversold can always get more oversold, but it's also an area where a stock can produce a powerful bounce higher from. Shares of OXBT have started to bounce off that 25 cents per share low and are quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in OXBT once it manages to break out above some near-term overhead resistance levels at 27 cents to 32 cents per 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 48,154 shares. If that breakout triggers soon, then OXBT could produce a massive oversold bounce that takes this stock back towards 40 cents to 50 cents per share. It's even possible for OXBT to re-test its 50-day moving average of 57 cents per share.

Traders should note that the volume today for OXBT has already hit over 700,000 shares with the stock up 7.8% to 27 cents per share. That oversold bounce could already be underway.

Traders can look to buy OXBT off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at 25 cents per share. One can also buy off strength once OXBT takes out those breakout levels with volume and then simply use the same stop around 25 cents per 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
OXBT $3.71 1.71%
AAPL $94.99 0.00%
AGQ $32.44 0.00%
HLF $43.99 0.00%
QNST $3.22 0.00%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs