Another stock that's trending very close to triggering a major breakout trade is Haverty Furniture (HVT - Get Report), which is a retailer of residential furniture and accessories. It provides its customers with a selection of products and styles mainly in the middle to upper-middle price ranges. This stock has been on fire during the last six months, with shares up a whopping 43%.
If you look at the chart for Haverty Furniture Companies, you'll notice that this stock has been in a monster uptrend for the last six months, with shares soaring higher from its low of $10.07 to its recent high of $17.55 a share. During that uptrend, shares of HVT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed HVT within range of triggering a major breakout trade.
Traders should now look for long-biased trades in HVT if it manages to break out above some near-term overhead resistance levels at $17.20 to $17.55 a share and then once it takes out more overhead resistance at $17.62 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 115,474 shares. If that breakout hits soon, then HVT will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $20 to $23 a share.Traders can look to buy HVT off any weakness to anticipate that breakout and then simply use a stop that sits right around some key near-term support levels at $16.16 a share to its 50-day at $15.82 a share. One can also buy off strength once HVT takes out those breakout levels with volume and then simply use a stop that sits right around $16.50 to $16.16 a share.
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