Editor's Note:

In addition to tonight's new candidate(s), consider these stocks as possible trading ideas and watch list candidates. Some of these stocks may need to see a break past key support or resistance:

(bullish ideas) EXPE, BCR, ICE, RL, HHC

(bearish ideas) VIV, SQM, GOLD,


Borg Warner - BWA - close: 87.25 change: +0.52

Stop Loss: 85.40
Target(s): 93.00
Current Option Gain/Loss: Unopened
Time Frame: exit PRIOR to earnings on July 25th
New Positions: Yes, see below

Company Description

Why We Like It:
BWA is in the auto parts industry. The stock has been building on a bullish trend of higher lows. The last couple of weeks have seen shares stall at resistance near $87.50, which was resistance back in early 2012. Now given the narrowing consolidation below this level BWA finally looks ready to breakout higher.

I am suggesting a trigger to buy calls at $87.75. More conservative traders may want to wait for a move above $88.00 instead. It is possible that $90.00 could be round-number resistance but we're aiming for $93.00. Please note that we will plan on exiting positions prior to the earnings report on July 25th. FYI: The Point & Figure chart for BWA is bullish with a $114 target.

Trigger @ 87.75

- Suggested Positions -

buy the Aug $90 call (BWA1317H90) current ask $1.75

Annotated Chart:

Entry on July -- at $---.--
Average Daily Volume = 860 thousand
Listed on July 10, 2013