Silicon Motion Technology Group
Another potential breakout trade could be setting up for Silicon Motion Technology (SIMO), a fabless semiconductor company that designs, develops and markets semiconductor solutions for the multimedia consumer electronics market. This stock has on a tear so far in 2011, with shares up over 215%.
If you take a look at the chart for Silicon Motion, you'll see that this is one ridiculously strong stock that's been uptrending for some time. In just the last two months, this stock ran up from its low of $8.27 a share to its current price of just over $13.30 a share. Even after that large move up, the stock might be setting up right now for still higher prices.
Market players should watch this stock for a major breakout if it can manage to trade and close above some past overhead resistance at $13.44 a share. A sustained move above that level would trigger a major breakout that could set the stock up for a big spike higher. What I like about the setup here for SIMO is that volume for the past four trading session has been tracking in very strong and all were up days.You could buy this stock once it closes over $13.44 on big volume. Look for volume that's tracking in close to or well above its three-month average action of 412,300 shares. As of last check, the stock has cleared that level and volume is over 624,000 shares. Watch how the stock closes today because we might just get that big breakout to trigger in a few hours. Silicon Motion shows up on an August list of 10 Small-Caps With Positive Earnings Trends.
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