BZ Chart Of The Day: Is HUSA About To Breakout?

The uptrend in Houston American Energy Corp. HUSA may continue. The shares could be on the verge of a breakout. This would set the stage for a move higher.

A breakout occurs when a stock trades above a resistance level. Resistance is a large group of investors who are all trying to sell their shares at, or close to, the same price. If a stock can make its way above the level, it shows that the sellers who created the resistance are gone.

With this large amount of supply out of the way, buyers will have to force the price higher to acquire shares.

As you can see on the following chart, shares of HUSA have had resistance around the $5.90 level. If they can break through the uptrend may continue.

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