TRW Automotive Holdings Corp.
Michigan-based TRW Automotive Holdings (TRW) is a relative strength trade that's forming a pattern called an ascending triangle right now. This setup is formed by horizontal resistance to the upside and uptrending support below shares. That horizontal resistance level is a good tip-off that TRW is another breakout trade to watch this week.
Essentially, as shares of TRW bounced in between those two levels, they were getting squeezed closer and closer to a breakout above resistance at $49.50. That breakout happened late last week, and shares have been sitting right above that level ever since. I'd recommend becoming a buyer on TRW's next leg higher -- since $49.50 has now become a support level for this stock, the next boost in volatility should push shares above Thursday's highs.
If you decide to take this trade, just make sure you keep a tight stop.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV