Another stock that's quickly setting up to trigger a near-term breakout trade is LIN TV (TVL), a television station group operator in the U.S. and Puerto Rico. This stock has been on blazing a trail to the upside in 2013, with shares up an impressive 45%.
If you look at the chart for LIN TV, you'll notice that this stock has been trading in a consolidation pattern for the last month and change, with shares moving between $10.09 on the downside and $11.55 on the upside. This stock has just started to flirt with its 50-day moving average of $10.89 a share, and it's starting to challenge some near-term overhead resistance at $11.06 a share. That move could quickly develop to a near-term breakout trade for shares of TVL.
Traders should now look for long-biased trades in TVL if it manages to break out above some near-term overhead resistance levels at $11.06 to $11.55 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 volume of 485,782 shares. If that breakout triggers soon, then TVL will set up to re-test or possibly take out its next major overhead resistance levels at $12.40 to $13.40 a share. Any high-volume move above $13.40 would then push TVL into new 52-week high territory, which is bullish technical price action. Some possible upside targets off a solid volume move above $13.40 are $14 to $15 a share.Traders can look to buy TVL off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $10.41 to $10.09 a share. One can also buy TVL off strength once it takes out those breakout levels with volume and then simply use a stop just below its 50-day at $10.89 a share.
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