Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high or takes out a prior overhead
Breakout candidates are something that
I frequently flag high-probability setups, breakout plays and stocks that are acting technically bullish. These are the ones that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and
With that in mind, here's a look at five stocks that are setting up to break out and possibly trade higher from current levels.
JUST UPDATED – TheStreet's Biotech Bible! Before you invest one single dime in any biotech stock you have got to KNOW WHAT YOU ARE BUYING! Get THE most comprehensive text covering the 186 biotech companies that have gone public since 2013! There’s nothing else like it for digging into this highly speculative group of stocks.
One clinical-stage biopharmaceuticals player that's starting to move within range of triggering a near-term breakout trade is Calithera Biosciences (
If you take a look at the chart for Calithera Biosciences, you'll notice that this stock recently formed a double-bottom chart pattern, after shares found some buying interest at $2.90 to $2.87 a share over the last four months. Following that potential bottom, this stock has now started to trend a bit higher off those support levels, and it's beginning to move within range of triggering a near-term breakout trade above some key overhead resistance levels.
Traders should now look for long-biased trades in Calithera Biosciences, if it manages to break out above some near-term overhead resistance levels at $3.06, to its 50-day moving average of $3.14, then above more resistance at $3.20 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 194,875 shares. If that breakout hits soon, then this stock will set up to re-test or possibly take out its next major overhead resistance levels at $3.40 to $3.66, or even $3.85 to $4 a share.
Traders can look to buy Calithera Biosciences off weakness to anticipate that breakout and simply use a stop that sits right around those recent double-bottom support levels. One can also buy this stock off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
A health care player that's starting to spike within range of triggering a big breakout trade is Tonix Pharmaceuticals (