Toyota Motors

Toyota Motors ( TM) is another name that's been benefitting from some upward momentum in 2013, only more so: Shares of TM have rallied close to 32% since the calendar flipped over to January. And now, this Japanese automaker looks well positioned for even higher ground by the end of the year.

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That's because TM is currently forming an ascending triangle pattern, a price setup that's formed by a horizontal resistance level above shares at $130 and uptrending support to the downside. Basically, as TM bounces in between those two technically significant levels, it's getting squeezed closer and closer to a breakout above resistance. When that breakout above $130 happens, we've out our buy signal.

At first glance, Toyota's chart looks abnormally "gappy". Those gaps, called suspension gaps, are caused by off-hours trading of Toyota's shares in Tokyo and London -- they can be ignored for technical purposes. The 50-day moving average has been a reasonably good proxy for support all the way up; I'd recommend keeping a protective stop right underneath it.

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