This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Poised for Breakouts

Westport Innovations

Another stock that's trending within range of triggering a near-term breakout trade is Westport Innovations (WPRT - Get Report), which is engaged in the research, development and marketing of low-emission engine and fuel injection systems that utilize alternative gaseous fuels such as natural gas, propane or hydrogen. This stock is off to a decent start in 2013, with shares up 14.5%.

>>4Hot Stocks to Trade (or Not)

If you take a look at the chart for Westport Innovations, you'll notice that this stock has been uptrending strong for the last three months, with shares moving higher from its low of $23.01 to its intraday high of $31 a share. During that uptrend, shares of WPRT have been consistently making higher lows and higher highs, which is bullish technical price action. Shares of WPRT have just started to move back above its 200-day moving average of $30.08 today and it's quickly moving within range of triggering a near-term breakout trade.

Market players should now look for long-biased trades in WPRT if it manages to break out above some near-term overhead resistance levels at $31.60 to $32.64 a share and then once it clears more resistance at $33.30 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 646,160 shares. If that breakout triggers soon, then WPRT will set up to re-test or possibly take out its next major overhead resistance levels above $35 a share to possible $39 a share.

Traders can look to buy WPRT off any weakness to anticipate that breakout and simply use a stop that sits close to some near-term support at $28.61 a share or near its 50-day at $27.74 a share. One could also buy off strength once WPRT clears those breakout levels with volume and then simply use a stop that sits just below its 200-day moving average of $30.08 a share.

This is another name that the short-sellers love, since the current short interest as a percentage of the float for WPRT is massive at 26.8%. We could easily see a monster short-squeeze if WPRT takes out those key resistance levels soon, so be ready to play it.
3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
KIOR $0.01 -3.45%
STNG $5.79 0.00%
UNXL $2.58 0.00%
WPRT $2.38 0.00%
AAPL $93.24 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs