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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Poised for Breakouts

Acacia Research

Another stock that's starting to move within range of triggering a near-term breakout trade is Acacia Research (ACTG), which through its operating subsidiaries acquires, develops, licenses and enforces patented technologies. This stock is off to a slow start in 2013, with shares down by 6.4%.

>>5 Stocks Poised to Pop on Bullish Earnings

If you look at the chart for Acacia Research, you'll notice that this stock has been trending sideways for the last two months, with shares moving between $22.84 on the downside and $25.48 on the upside. Shares of ACTG are now starting to push higher and move within range of both its 50-day and 200-day moving averages. That move is quickly setting up ACTG to potentially trigger a near-term breakout trade above the upper end of its recent sideways chart pattern.

Market players should now look for long-biased trades in ACTG if it manages to break out above both its 50-day at $24.57 and its 200-day at $25.69 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 action of 702,953 shares. If that breakout hits soon, then ACTG will set up to re-test or possibly take out its next major overhead resistance level at $27 a share. Any high-volume move above $27 will then give ACTG a chance to re-fill its previous gap down zone from April that started near $30 a share.

Traders can look to buy ACTG off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support levels at $23.33 or $22.84 a share. One can also buy ACTG off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

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