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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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), 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs