5 Stocks Poised for Breakouts

Saia

One more stock that's already entered breakout territory is trucking player Saia (SAIA), an asset-based trucking company that provides a variety of transportation and supply chain solutions to a range of industries, including the retail, chemical and manufacturing industries. This stock is off to a monster start so far in 2012, with shares up over 70%.

If you look at the chart for Saia, you'll see that this stock has been uptrending extremely strong for the past six months, with shares skyrocketing from a low of $10.37 to a recent high of $21.28 a share. During that uptrend, shares of Saia have consistently made higher lows and higher highs, which is bullish technical price action. Also during that uptrend, this stock has never violated its 50-day moving average by more than 50 cents before buyers stepped in to defend the price. That shows how strong demand has been for this stock off of any pullback.

Now shares of Saia have just started to move into breakout territory on strong volume. On Thursday, the stock took out some near-term overhead resistance at $21.28 with 261,000 shares, which is well above its three-month average action of 160,314 shares.

Traders should now look for long-biased trades in SAIA as long as this stock trending above $21.28 a share with strong upside volume flows. I would consider any upside volume day that registers near or above 160,314 shares as bullish. If SAIA can maintain its trend above $21.28 and above its 50-day moving average of $18.30 a share, then this stock should be setting up to hit $30 a share in the near future.

You can buy this stock off of weakness as long as its trading above $21.28 a share or you could give it more room down towards $19 a share, with a stop just below its 50-day moving average of $18.30 a share. I would prefer to see SAIA just continue to trend over $21.28 and get long of some mild weakness.

To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.

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

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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