My final idea for a near-term breakout trade is
(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.
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