PLUG MY GERN OXBT VMEM CDTI
DELAFIELD, Wis. (Stockpickr) -- No matter which way the market is trending on a day-to-day basis, there's always some sector or some chart that has a potentially explosive pattern developing. Once you know which setups to look for from a technical standpoint, then you can develop a watch list of stocks that could be setting up to make some amazing moves.

One of my recent explosive chart ideas that's exploding higher today is Plug Power (PLUG), which I featured in Feb. 12's "5 Stocks Ready to Explode Higher" at $3.77 share. I mentioned in that piece that shares of PLUG were uptrending strong, with the stock consistently making higher lows and higher highs, which is bullish technical price action. That uptrend was starting to push shares of PLUG within range of triggering a major breakout trade above some key overhead resistance levels.

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Shares of PLUG took out the first key resistance level today after the stock gapped sharply higher above $4.20 a share with monster upside volume. Volume so far has already registered over 38 million shares, which is well above its three-month average action of 22.3 million shares. Shares of PLUG are higher by over 15% here with the stock trading near $4.50, but I don't think this stock is anywhere near done going higher. Traders should now watch for the second key resistance level to get taken out at its 52-week high of $4.90 a share. A close above that level with high volume should prepare PLUG for a run towards $8 to $10 a share.

Here's a look at five stocks that have with potentially explosive chart patterns.

China Ming Yang Wind Power


One alternative energy stock that has a chart that looks ready to explode higher here is China Ming Yang Wind Power (MY), which engages in designing, manufacturing, selling, leasing and servicing megawatt-class, grid-connected and horizontal-axis wind turbines primarily in the People's Republic of China. This stock has been on fire over the last three months, with shares up sharply by 48%.

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If you consult the chart for China Ming Yang Power, you'll see that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $2.50 on the downside and $3.11 on the upside. Shares of MY are starting to spike higher here right above its 50-day moving average of $2.55 a share with monster upside volume. Volume so far today has already registered over 3.72 million shares, which is well above its three-month average action of 1.05 million shares. This spike is quickly pushing shares of MY within range of triggering a major breakout trade.

Traders should now look for long-biased trades in MY if it manages to break out above some near-term overhead resistance levels $2.98 to $3.11 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 volume of 1.05 million shares. If that breakout materializes soon, then MY will set up to explode higher above resistance that has held the stock down for two months. Some possible upside targets off that breakout are its 52-week high at $3.52 to $4 a share, or possible even $5 a share.

Traders can look to buy MY off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $2.55 a share. One can also buy MY off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Geron


One biotechnology player that could be preparing for an explosive run higher soon is Geron (GERN), which is developing a first-in-class telomerase inhibitor, imetelstat, in hematologic myeloid malignancies This stock has been a monster winner for the bulls over the last six months, with shares up sharply by 240%.

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If you take a glance at the chart for Geron, you'll see that this stock has been trending sideways and consolidating for the last two months and change, with shares moving between $4.08 on the downside and $5.92 on the upside. Shares of GERN are now showing a chart pattern of higher lows over the last month and change, which demonstrates that this stock is in high demand whenever it pulls back. Shares of GERN are now spiking higher here right off its 50-day moving average of $4.89 a share and it's quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in GERN if it manages to break out above some near-term overhead resistance levels at $5.28 to $5.92 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 5.52 million shares. If that breakout triggers soon, then GERN will set up to re-test or possibly take out its next major overhead resistance levels at $6.92 to its 52-week high at $7.79 a share.

Traders can look to buy GERN off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $4.70 to $4.50 a share. One can also buy GERN off strength once it blasts above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Oxygen Biotherapeutics


Another biotechnology player that could be setting up here to explode sharply higher is Oxygen Biotherapeutics (OXBT), which engages in developing biotechnology products that deliver oxygen to target tissues in the body primarily in the U.S. This stock is off to a monster start in 2014, with shares up sharply by 45%.

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If you take a look at the chart for Oxygen Biotherapeutics, you'll see that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $5.50 on the downside and $7.45 on the upside. Shares of OXBT are spiking higher here right above its 50-day moving average of $5.80 a share with strong upside volume. Volume so far today has already registered over 623,000 shares, which is well above its three-month average action of 147,898 shares. That spike is quickly pushing shares of OXBT within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in OXBT if it manages to break out above some near-term overhead resistance levels at $7.20 to $7.45 a share 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 147,898 shares. If that breakout starts soon, then OXBT will set up to explode higher back towards its next major overhead resistance levels at $8.58 to $9 a share. Any high-volume move above those levels will then give OXBT a chance to tag $10 to $11 a share.

Traders can look to buy OXBT off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $5.80 a share. One could also buy OXBT off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Violin Memory


Another stock that could be setting up for a monster explosion higher is Violin Memory (VMEM), which develops and supplies memory-based storage systems to bring storage performance in line with high-speed applications, servers and networks in the Americas, Europe and the Asia Pacific. This stock has been hit hard by the bears over the last six months, with shares off by 41%.

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If you take a glance at the chart for Violin Memory, you'll see that this stock has been uptrending strong over the last month, with shares pushing higher from its low of $3.20 to its recent high of $4.22 a share. During that uptrend, shares of VMEM have been consistently making higher lows and higher highs, which is bullish technical price action. This spike today -- which has pushed the stock up over 5% to $4.11 a share -- is quickly pushing VMEM within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in VMEM if it manages to break out above some key near-term overhead resistance levels at $4.22 to $4.37 a share 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 876,326 shares. If that breakout kicks off soon, then VMEM could potentially explode higher into its previous gap-down-day zone from last November that started at $6.21 a share. This stock could very easily fill that entire gap if it gets into that zone with strong upside volume flows.

Traders can look to buy VMEM off weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average at $3.77 or below more key near-term support at $3.63 a share. One can also buy VMEM 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.

Clean Diesel Technologies


My final idea that could be preparing for an explosive move to the upside is Clean Diesel Technologies (CDTI), which engages in the manufacture and distribution of heavy duty diesel and light duty vehicle emissions control systems and products to automakers, integrators and retrofitters worldwide. This stock has been on fire so far in 2014, with shares up sharply by 71%.

If you consult the chart for Clean Diesel Technologies, you'll notice that this stock recently pulled back from its high of $3.48 a share to a low of $2.08 a share. Following that sharp pullback, shares of CDTI have started to rebound higher with the stock tagging its recent high of $2.90 a share. So far off that pull back, shares of CDTI have been making higher lows, which shows that the stock is in demand when it sells off. Shares of CDTI are now starting to trend within range of triggering a major breakout trade.

Traders should now look for long-biased trades in CDTI if it manages to break out above some near-term overhead resistance levels at $2.76 to $2.90 a share 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 434,295 shares. If that breakout triggers soon, then CDTI will set up to potentially soar higher back towards its 52-week high at $3.48 a share, or even $4 to $4.50 a share.

Traders can look to buy CDTI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $2.32 or around its 50-day at $2.18 a share. One can also buy CDTI off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

To see more stocks with potentially explosive chart patterns, check out the Explosive Stock Chart Watchlist portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.