Two Stocks Poised To Breakout (TC, TQNT)

Large moves in stocks often seem to come out of nowhere, leaving retail investors to either chase names the have already popped or throw money blindly after stocks that look “cheap.” One important lesson that retail traders need to understand is that stocks that have sold off in a downward market cycle are often the worst stocks to buy when the overall market turns positive. It is the names that have experienced strong support during the weak part of the part cycle that are often the first to move higher—significantly higher. This is the reason why stocks “break out.” A break out will happen because the stock has shown that traders and investors want to own it no matter what the S&P may be doing. Traders defend the stock from sell offs so that, as market sentiment turns positive, momentum money flows into the stock, pushing it to highs above the recent range. Here are two stocks that have shown remarkable support and are primed to pump higher over the near-term: 1. Thompson Creek Metals Company Inc. TC: this is a molybdenum mining company with vertically integrated mining, milling, processing and marketing operations in Canada and the United States. The company's operations include the Thompson Creek producing open-pit molybdenum mine and concentrator in Idaho, the Langeloth metallurgical facility in Pennsylvania and a 75% joint venture interest in the Endako producing open-pit molybdenum mine, concentrator and roaster in British Columbia. The stock has been basing between $8.25 and $10.00 over the past five and a half months, giving time for the 50-day and 18-day moving averages to flatten out. This sets the stock up with support to the downside, with volume coming into the stock, pushing to up to the $10.00 level. The stock can hit $12.00 in the short-term. 2. TriQuint Semiconductor, Inc. TQNT: this is a supplier of modules, components and foundry services to communications companies. The company offers different radio frequency and other intermediate frequency products that address three markets: handsets, networks and military systems. The Company's products are designed on various wafer substrates, including compound semiconductor materials, such as gallium arsenide and piezoelectric crystals, such as lithium tantalate. Shares had been selling off throughout May and June, but made a u-turn and ran higher in July. The stock has based around the $7.00 level for the past two months, giving the 50-day and 18-day moving averages times to flatten. The stock is moving higher today, which has reinforced the support at the moving averages. The stock can hit, at least, $8.00 over the short-term. Picking up both of these names (along with a few other similar setups) as a basket is the best way to play these breakouts. With an average price target premium of 17.15%, this could be a real solid addition to any trading portfolio. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.