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 Poised for Breakouts

Rigel Pharmaceuticals

Another stock that's trending very close to triggering a major breakout trade is Rigel Pharmaceuticals (RIGL - Get Report), a clinical-stage drug development company that discovers and develops novel, small-molecule drugs for the treatment of inflammatory/autoimmune diseases, as well as for certain cancers and metabolic diseases. This stock has been hammered by the bears so far in 2013, with shares off by a 28%.

>>2 Biotech Stocks Under $10 to Watch

If you look at the chart for Rigel Pharmaceuticals, you'll notice that this stock recently gapped down huge from over $7.50 a share to its 52-week low of $4.41 a share with heavy downside volume. That move has pushed shares of RIGL into oversold territory, since its current relative strength index reading is 30. Oversold can always get more oversold, but it's also an area where a stock can experience a powerful bounce higher from if buyers step in. Shares of RIGL have started to trend up off that $4.41 low and it's now quickly moving within range of triggering a major breakout trade.

Traders should now look for long-biased trades in RIGL if it manages to break out above some near-term overhead resistance at $4.81 a share and then once it takes out its gap down day high of $5.14 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 volume of 729,058 shares. If that breakout triggers soon, then RIGL will set up to re-fill some of its previous gap down zone from earlier this month that started above $7.50 a share.

Traders can look to buy RIGL off any weakness to anticipate that breakout and simply use a stop that sits right below its 52-week low of $4.41 a share. One can also buy RIGL off strength once it takes out those breakout levels with volume and then simply use a stop just below at around $4.70 to $4.50 a share.
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
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
VELT $0.00 0.00%
BIDU $141.26 -2.42%
DDD $13.75 4.40%
SAVE $48.80 0.39%
RIGL $2.80 3.32%


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs