TravelCenters of America
My final breakout idea today is TravelCenters of America (TA), which operates and franchises travel centers mainly along the U.S. interstate highway system. This stock has been on fire so far in 2013, with shares up a whopping 134%.
If you look at the chart for TravelCenters of America, you'll notice that this stock recently pulled back off its 52-week high of $12.50 a share to its recent low of $10.59 a share. That pullback came after a powerful uptrend for shares of TA that took the stock from $4 to that $12.50 in six months. So far, shares of TA have held its 50-day moving average at $10.47 a share off this recent pullback. Now the stock is starting to push higher and move within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in TA if it manages to break out above some near-term overhead resistance levels at $11.48 to $12.03 a share and then once it takes out its 52-week high at $12.50 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 action of 446,248 shares. If that breakout triggers soon, then TA will set up to enter new 52-week-high territory above $12.50, which is bullish technical price action. Some possible upside targets off that breakout are $14 to $15 a share, or even $16 a share.Traders can look to buy TA off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $10.47 a share or right below some more support at $10.31 a share. One could also buy TA off strength once it clears those breakout levels with volume and then simply use a stop right below its 50-day at $10.47 a share. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Madison, Wis.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV