BALTIMORE (Stockpickr) -- If you're looking for an investment with relative strength in this market, look no further than telecoms. No slouch since the start of 2012, the S&P 500 has eked out performance of 8.78% (with dividends factored in) so far this year -- but the S&P Telecommunications Sector Index has managed to do a lot better, churning out 17.8% gains over that same period.
So it shouldn't come as a surprise then that there are ample breakout opportunities in the telecom sector right now.
Telecoms sport defensive revenue streams and massive dividend payouts right now, giving them a defensive bent at a time when investors are especially anxious about owning stocks. And better still, their year-to-date performance bodes well for telcos for the rest of the year; positive relative strength trends led to positive returns on a three-to-10-month time horizon according to a handful of recent studies.With sentiment looking crowded on the bearish side of the trade right now, it makes sense to take a technical take at five breakout telecom stocks today. >>ACTIVE STOCK TRADERS: Check out Stockpickr's special offer for Real Money, headlined by Jim Cramer, now! For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. Here's a look at five technical telecom sector setups that could deliver breakout gains to your portfolio this week.
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