My final idea today for a breakout trade is Spirit Airlines (SAVE), which provides passenger airline service principally to and from south Florida, the Caribbean and Latin America. This stock has been red hot so far in 2013, with shares up 46%.
If you look at the chart for Spirit Airlines, you'll notice that this stock has been uptrending strong for the last two months and change, with shares soaring higher from its low of $18.51 to its recent high of $26.87 a share. This stock briefly pulled back off that $26.87 high to $24.30 a share, but it has now started to uptrend again and move within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in SAVE if it manages to break out above some near-term overhead resistance at its 52-week high of $26.87 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 577,433 shares. If that breakout triggers soon, then SAVE will set up to enter new 52-week-high and all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $35 a share or possibly even $40 a share.Traders can look to buy SAVE off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $24.30 a share. One could also buy SAVE off strength once it takes out that $26.87 a share with volume and then simply use a stop that's a few percentage points below your entry point. 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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