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
TheStreet Open House

5 Stocks Poised for Breakouts

Coronado Biosciences

One biopharmaceutical player that's quickly moving within range of triggering a major breakout trade is Coronado Biosciences ( CNDO), which is focused on novel immunotherapy biologic agents for autoimmune diseases and cancer. This stock is off to a bearish start in 2013, with shares off sharply by 61%.

If you take a look at the chart for Coronado Biosciences, you'll notice that this stock gapped down sharply back in October from close to $7 to under $2 a share with heavy downside volume. Following that gap down, shares of CNDO have trended sideways in a wide range, with shares moving between $1.25 on the downside and $1.91 on the upside. Shares of CNDO have started to uptrend off that $1.25 low and it's now quickly moving within range of triggering a major breakout trade above the upper-end of its recent range.

>>5 Health Care Stocks Ready to Cut You a Dividend Check

Traders should now look for long-biased trades in CNDO if it manages to break out above some near-term overhead resistance levels at $1.86 to $1.88 a share, and then once it takes out more resistance levels at $1.91 to its gap down day high of $2.16 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 1.42 million shares. If that breakout hits soon, then CNDO will set up to re-fill some of its massive gap down zone that started near $7 a share. Some possible upside targets if CNDO gets into that gap with volume are $2.50 to $3, or even $3.50 a share.

Traders can look to buy CNDO off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.50 to $1.42 a share. One can also buy CNDO off strength once it starts takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

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