Another stock that could be setting up to breakout is Southern Company ( SO). Southern Company, through its subsidiaries, operates as a utility company that provides electric service in the southeastern United States. This stock is quickly approaching a breakout with shares currently trading at around $36 a share.

Look for Southern Company to take out some near term resistance at around $36.32 to $36.78 a share to confirm the breakout. A move above $36.78 would mark a new 52-week high and would demonstrate the shares are in high demand. If the stock can manage to get above that level, it could make a run towards all-time highs at around $40. I think the chances for this look good since the stock has been acting strong even while the market has been struggling.

Just last week, the stock traded above $36.50 while the overall market sold off. That move came on decent volume of 5.7 million shares versus the average 3-month volume of 4.9 million shares. A move above $36.78 on volume above 4.9 million should confirm that Southern's breakout is for real not a false move. The stock also has a 5.1% dividend yield, so you could get paid to wait for the move.

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