SPRD

Here's a big breakout that popped up late in the day. Earnings? Big contract? Nope, it was merger mania again. INTC apparently bought someone, and these guys are in the same general sector, so traders figure they will get bought up, too. Other than a lame reason for a breakout, this is a very nice chart pattern, with a cup and handle and very well defined support and resistance. Price relative did not quite hit a new high before the breakout, a minor weakness, and ATR was rising during the later stages of the base, another minor flaw.