My final idea today for a breakout trade is
(CZR - Get Report)
, a casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company. This stock has been exploding higher so far in 2013, with shares up 67%.
If you look at the chart for Caesars Entertainment, you'll notice that this stock recently sold off hard from its recent high of $14.25 a share to right around $10.50 a share. Following that pullback, shares of CZR have started to form consolidation pattern at around $10.60 to $12 a share, and it's now quickly moving within range of breaking about above the recent highs of its consolidation chart pattern.
Traders should now look for long-biased trades in CZR if it manages to break out above some near-term overhead resistance at $12.10 a share with high volume. Look for a sustained move or close above $12.10 share with volume that hits near or above its three-month average action of 838,684 shares. If that breakout triggers soon, then CZR will set up to re-test or possibly take out its next major overhead resistance levels at $13.14 to $14.25 a share. Any high-volume move above $14.25 will then put $15.74 to $17.30 into range for shares of CZR.
Traders can look to buy CZR off any weakness to anticipate that breakout and simply use a stop that sits right below some near-term support at $10.62 a share. One could also buy CZR off strength once it takes out $12.10 a share with volume and then simply use a stop that sits just below today's low of $11.04 a share.
This stock is a favorite target of the short-sellers, since its current short interest as a percentage of its float is extremely high at 19%. If that breakout triggers soon, then CZR could easily setup for a monster short-squeeze, so make sure to put this name on your breakout trading radar.
To see more breakout candidates, check out the
Breakout Stocks of the Week
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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