5 Stocks Setting Up to Break Out
Traders should now look for long-biased trades in BRLI as long as it maintains a trend above its key breakout levels at $24.51 to $24.48 a share with high-volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 227,772 shares. If we see BRLI hold that trend, then this stock could easily continue its uptrend towards $30 a share or higher in the near future.
One can buy BRLI off of weakness and simply use a stop around some near-term support at $23 a share. Another way to play BRLI is to buy off strength and get long once it clears $24.48 to $24.51 a share with heavy volume. If you buy off strength, then I would simply use a stop that's a few percentage points below those levels in case that breakout fails to hold.
I also included Bio-Reference recently in "5 Stocks That Could Pop Post-Earnings."
To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.