The uptrend in Houston American Energy Corp. (NYSE: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.
