A stock in the furniture and fixtures complex that's quickly approaching a big breakout is
(SCSS - Get Report), which develops, manufactures, markets, distributes and retails adjustable-firmness beds and other sleep-related accessory products in the U.S., Canada and Australia. This stock has been a monster winner in 2011, with shares up over 130%.
If you look at the chart for Select Comfort, you'll see that this stock formed a perfect double at $11.89 and $11.97 a share back in August and October. After hitting that bottom, the stock zoomed to the upside and now trades near $21 a share. This huge run up in the stock has also taken SCSS very close to triggering a major breakout.
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Traders should keep an eye on SCSS for a sustained high-volume move and close above $21.14 and then $22.19 a share. A high-volume move above those levels will trigger a big breakout that should spike the stock significantly higher. Look for volume on any move above those levels that tracks in near or above its three-month average volume of about 1.2 million shares. If we get that action soon, then look for SCSS to make a run at its next major past resistance level of $25 a share, or possibly much higher.
If you're bullish on SCSS, look to be a buyer off any weakness and simply anticipate the breakout. I would look to use a mental stop that's right below the 50-day
of $19.53 a share, in case the stock isn't ready to breakout just yet. If you buy the stock off weakness, then I would look to add to any long positions once SCSS takes out $22.19 with volume.