5 Stocks Poised for Breakouts
One could be a buyer of CKEC off weakness and anticipate the breakout with a stop just below its 50-day moving average of $14.27 a share. If you get long off weakness, then I would add to the position once CKEC clears $15.57 to $15.80 with high volume. A better strategy is to just buy off strength once CKEC clears those breakout levels with heavy volume. If you get long off strength, then simply use a stop a few percentage points below $15.57 a share.
It's worth mentioning that CKEC sports a pretty decent short interest and has a small float of just 15.85 million shares. The current short interest as a percentage of the float for CKEC is 7.6%. The bears have also been increasing their bets from the last reporting period by 153.5%, or by about 752,000 shares. If this stock triggers that breakout soon, then we could easily see a sizable short-squeeze develop that spikes the stock big. Tesla Motors
Another stock that's moving within range of triggering a big breakout trade is Tesla Motors (TSLA) , which designs, develops, manufactures and sells electric vehicles and electric vehicle powertrain components, including the Tesla Roadster, an electric sports car. This stock is off to a decent start in 2012 with shares up around 16%.
If you take a look at the chart for Tesla Motors, you'll see that this stock formed a double-bottom chart pattern a few months ago at $26.83 to $27.11 a share. After marking that bottom, shares of TSLA have started to uptrend strong hitting a recent high of $34.50 a share. During that uptrend, shares of TSLA have been making mostly higher lows and higher highs, which is bullish technical price action. This stock has also started to move into breakout territory, since it's cleared some near-term overhead resistance at $32.80 a share. That move is now pushing TSLA within range of an even bigger breakout trade.