My final breakout trading prospect is Neuralstem ( CUR), which is engaged in the development and commercialization of treatments for central nervous system disease based on transplanting human neural stem cells and the use of small molecule drugs. This stock has been a monster for the bulls so far in 2013, with shares up sharply by 63%.
If you look at the chart for Neuralstem, you'll notice that this stock has been uptrending very strong for the last six months, with shares soaring higher from its low of $1 to its high of $1.79 a share. During that move, shares of CUR have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of CUR have recently pulled back to its 50-day moving average at $1.59 a share, and the stock is starting to bounce sharply higher off that level. That move is quickly pushing CUR within range of triggering a big breakout trade.Traders should now look for long-biased trades in CUR if it manages to break out above some near-term overhead resistance levels at $1.75 to $1.79 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 468,962 shares. If that breakout triggers soon, then CUR will set up to re-test or possibly take out its 52-week high at $1.96 a share. Any high-volume move above $1.96 will then give CUR a chance to tag $2.50 to $3 a share. Traders can look to buy CUR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $1.59 a share, or below more support at $1.50 a share. One could also buy CUR off strength once it clears those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, Wis.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV