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5 Stocks to Trade for Breakout Gains

CurrencyShares Euro Trust

Another eurozone ETF that's getting plenty of Twitter attention this morning is the CurrencyShares Euro Trust (FXE), a fund that gives investors exposure to the movement of the euro. Like EWZ, FXE isn't looking particularly bullish right now - but there's a more predictable move at play in this stock.

FXE is currently forming a descending triangle pattern, with horizontal support at $129.50 and downtrending resistance acting as a sort of ceiling for shares. Essentially, as FXE bounces in between those two technical price levels, it's getting squeezed closer and closer to a breakdown below that support level at $129.50. When that happens, traders have a signal to bet against this fund.

The next-lowest support level in FXE is $126, a price that acted as a floor for units back at the start of the year. That price provides a good preliminary target when and if $129.50 gets broken to the downside. If you do decide to take this trade, I'd recommend keeping a protective stop just above the 50-day moving average.

To see these plays in action, check out the Technical Setups for the Week portfolio at Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.


Follow Stockpickr on Twitter and become a fan on Facebook.
At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji is the editor and portfolio manager of the Rhino Stock Report, a free investment advisory that returned 15% in 2008. He is a contributor to numerous financial outlets, including Forbes and Investopedia, and has been featured in Investor's Business Daily, in Consumer's Digest and on
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FXE $103.97 -0.31%
EWP $30.19 -0.72%
COH $32.39 0.68%
GOLD $60.38 -1.84%
RL $125.61 0.50%


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