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5 Stocks Poised for Breakouts

First Solar

My final idea for a near-term breakout trade is First Solar (FSLR - Get Report), which designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. This stock is off to strong start in 2013, with shares up sharply by 24%.

If you look at the chart for First Solar, you'll notice that this stock recently spiked dramatically higher in one trading session, with shares soaring from below $28 to its recent high of $41 a share. That move came on extremely strong upside volume. Shares of FSLR pulled back off that $41 high and have now found support at around $36 a share. This stock is now quickly moving within range of triggering a near-term breakout trade.

>>3 Huge Stocks to Trade (or Not)

Traders should now look for long-biased trades in FSLR if it manages to break out above some near-tem overhead resistance levels at $39.47 to $41 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 6.32 million shares. If that breakout triggers soon, then FSLR will set up to re-test or possibly take out its next major overhead resistance levels at $50 to $52 a share.

Traders can look to buy FSLR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $36 to $35.14 a share. One could also buy FSLR off strength once it clears those breakout levels with volume and then simply use a stop just below $38 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.


Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including and . You can follow Pedone on Twitter at or @zerosum24.
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CLDX $4.07 -1.93%
CYTR $3.30 -3.51%
CYTK $8.40 -0.94%
FSLR $52.85 -3.65%
SGEN $34.99 -3.79%


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