Leo Fasciocco focuses exclusively on stock that have broken out of technical base or those that are poised to do so. Here, the editor of Ticker Tape Digest, reviews a pair of stocks in the travel and leisure sectors.

Royal Caribbean (RCL), based in Miami, Florida is in good position to breakout. With strong earnings expected this year, we see the stock in good position to be accumulated.

In addition to Royal Caribbean, the company operates Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises.

The stock broke out of its base in October, but ran out of gas. Since then stock has been sailing north. It is in position to breakout to a new all time high. That would be bullish.

This year, analysts are forecasting 41% surge in RCL's earnings to $4.79 a share from $3.39 a year ago.

The stock sells with a price-earnings ratio of 19. We see that as attractive to value and growth investors.

Going out to 2016, the Street projects a 28% gain in net to $6.13 a share from the anticipated $4.79 this year.

We suggest accumulation of a partial stake in RCL with further buying to be done on a breakout over $100.50.

We are targeting RCL for a move to $115 after a breakout. A protective stop can be placed near $96.

Institutional sponsorship is excellent. The largest fund buyer recently was the 5-star rated T. Rowe Price Blue Chip Growth Fund, which purchased 1.4 million shares.

Also, the 5-star rated T. Rowe Price Institutional Large Cap Growth Fund was a recent buyer of 1 million shares.

Meanwhile, Southwest Airlines (LUV), a leader in the strong acting airline sector, has broken out from a six-week flat base.

Southwest has the lowest operating cost structure in the domestic airline industry and consistently offers low and simple fares.

The company has a good customer service record. Airline stocks have been strong this year due to the decline in crude oil prices.

Since late 2012 the stock has rocketed higher to an all time high of $48.49. The stock put down a tight flat base, above its rising 50-day moving average line. The recent breakout just clears the base.

This year, analysts are forecasting a strong 76% jump in profits to $3.53 a share from $2.01 a year ago. They have been raising their estimates.

The stock sells with a price-earnings ratio of 13. We see that as attractive for value-growth investors at this time.

Going out to 2016, the Street is looking for a 13% increase in net to $3.98 a share from the anticipated $3.53 this year.

Institutional sponsorship is bullish. A key fund buyer recently was the 4-star rated Fidelity Contrafund, which purchased 775,700 shares. Also, Invesco American Franchise A Fund was a recent buyer of 1.1 million shares.

LUV is a good intermediate-term play provided earnings remain on course. We are targeting LUV for a move to $57 of this breakout. A protective stop can be placed near $45.

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