One more stock that's trending very close to triggering a near-term breakout trade is Telenav (TNAV), a provider of location-based services, including voice-guided navigation, on mobile phones. This stock has been trending lower so far in 2013, with shares off by 16%.
If you look at the chart for Telenav, you'll notice that this stock has been downtrending badly for the last three months, with shares dropping lower from its high of $8.40 to its recent low of $6.31 a share. During that downtrend, shares of TNAV have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of TNAV have just started to bounce off that $6.31 low, and it's quickly moving within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in TNAV if it manages to break out above some near-term overhead resistance at $6.78 a share and then above its 200-day at $6.79 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 168,205 shares. If that breakout triggers soon, then TNAV will set up to re-test or possibly take out its 50-day moving average of $7.41 a share, or more overhead resistance levels at $7.46 to $7.96 a share.Traders can look to buy TNAV off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $6.31 a share. One could also buy TNAV off strength once it takes out those breakout levels with volume and then simply use the same stop at around $6.31 a share. 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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