TRW Automotive Holdings Corp.
Michigan-based TRW Automotive Holdings (TRW - Get Report) 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.