This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Stocks Poised for Breakouts


Another stock that's starting to move within range of triggering a near-term breakout trade is SunPower ( SPWR), a vertically integrated solar products and services company that designs, manufactures and delivers high-performance solar electric systems worldwide for residential, commercial and utility-scale power plant customers. This stock has made an insane move higher so far in 2013, with shares up a whopping 247%.

>>4 Hot Stocks to Trade (or Not)

If you look at the chart for SunPower, you'll notice that this stock recently pulled back of its 52-week high of $23.76 a share and found some buying interest at around $18 a share. This stock has actually put in a triple bottom at $18.05, $18 to $17.77 a share over the last few weeks. If that bottom holds, which it has so far, then SPWR could be ready to triggering a near-term breakout trade.

Traders should now look for long-biased trades in SPWR if it manages to break out above some near-term overhead resistance levels at $19.67 to $20.90 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 5.79 million shares. If that breakout triggers soon, then SPWR will set up to re-test or possibly take out its 52-week high at $23.76 a share. Any high-volume move above that level will then put $25 to $30 into range for shares of SPWR.

Traders can look to buy SPWR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $18 to $17.77 a share. One can also buy SPWR off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point. I would add to either position once SPWR takes out its 52-week high at $23.76 a share with high volume.

This stock is loved among the short-sellers, since the current short interest as a percentage of the float for SPWR is extremely higher at 29.7%. That high of a short interest could easily produce an explosive move if SPWR triggers that breakout soon, so make sure to have this name on your breakout trading watchlist.
5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
ACOR $26.11 1.83%
MED $33.70 4.56%
OPXA $2.34 -1.48%
TTWO $34.92 2.65%
SPWR $17.39 0.93%


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs