5 Potential Breakout Stock Charts

With just a few more days before the final trading session of 2013, it would take a pretty active couple of days to derail what's been a spectacular year for stock investors.  Since the calendar flipped over to January, the S&P 500 (SPX) (SPY) has rallied more than 29%, climbing to new all-time highs in spite of a real lack of participation in among retail investors.  And if last week's trading is any indication, a Santa Claus rally looks likely to tack on some extra gains before the first trade of 2014.  That's why we're taking a closer technical look at five year-end trades to take this week.

If you're new to technical analysis, here's the executive summary:

Technicals are a study of the market itself.  Since the market is ultimately the only mechanism that determines a stock's price, technical analysis is a valuable tool even in the roughest of trading conditions.  Technical charts are used every day by proprietary trading floors, Wall Street's biggest financial firms, and individual investors to get an edge on the market.  And research shows that skilled technical traders can gain an edge over the short-term market moves.

Here are five high-volume stocks on the radar:

Bally Technologies (BYI)

It may seem like a sort of unlikely choice, but mid-cap gambling device designer Bally Technologies(BYI) is topping off our list today.  Bally is capping off a stellar run in 2013, after rallying more than 72% since the start of the year.  But don't worry if you missed the move; the technicals point to even higher ground in the short-term.

BYI Daily Chart
1227-BYI

That's because Bally is currently forming an ascending triangle pattern, a bullish price setup that's formed by a horizontal resistance level above shares and uptrending support to the downside.  Basically, as BYI bounced between those two technical price levels, it's been getting squeezed closer and closer to a breakout above resistance.  The breakout happened just before Christmas, and it's giving us a buy signal this week.

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