My final breakout trading prospect is Popular (BPOP), a publicly owned bank holding company that offers retail and commercial banking services through its main banking subsidiary, Banco Popular de Puerto Rico. This stock is off to a strong start so far in 2013, with shares up sharply by 37%.
If you look at the chart for Popular, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $23.97 to its recent high of $29.05 a share. During that uptrend, shares of BPOP have been consistently making higher lows and higher highs, which is bullish technical price action. This stock recently pulled back to its 50-day moving average and subsequently bounced higher. Shares of BPOP are now quickly moving within range of triggering a near-term breakout trade.Traders should now look for long-biased trades in BPOP if it manages to break out above some near-term overhead resistance levels at $29.05 a share to its 200-day moving average at $29.08 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 1.27 million shares. If that breakout triggers soon, then BPOP will set up to re-test or possibly take out its next major overhead resistance levels at $32 to its 52-week high at $34.34 a share. Any high-volume move above $34.34 will then give BPOP a chance to tag $40 a share. Traders can look to buy BPOP off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $26.58 a share. One could also buy BPOP off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point. To see more breakout candidates, check out the Breakout Stocks of the Week portfolio on Stockpickr. -- Written by Roberto Pedone in Delafield, 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