Goodrich Petroleum Corp (GDP) Poised for Breakout

09/28/2010 12:01 am EST

Focus: STOCKS

There’s no shortage of bullish charts out there right now, but not all of them are in position for new buys.

One name I’m watching right now, Goodrich Petroleum Corporation (GDP), is in pretty good technical shape here and looks like it may be gearing up for a move soon. It’s nowhere near short-term extended like so many other stocks at the moment, and in fact is knocking on the door of a breakout from a multi-month trading range.

The Plan

With GDP threatening resistance right here, it’s on my radar for a play. I’m looking to buy this one if it’s able to break out through the $14.10 level, and would expect a quick push up to the $15.20 area.  That level has proven to be both support and resistance in the past, which makes it a logical spot for a rest if the next move carries that far.

Here’s a closer look at the chart of GDP for you:


Click to Enlarge

By Jeff White of TheStockBandit.com.

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