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.


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

Roberto Pedone, based out of Madison, Wis., 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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