Another stock that's setting up for a major breakout is
(DATE - Get Report)
. This company is an online dating platform in China. This stock is off to a hot start in 2012 with shares up over 19% so far.
If you take a look at the chart for Jiayuan.com International, you'll see that this stock has been absolutely crushed from its August high of $14.87 to its recent low of $5.50 a share. During that huge slide down in the stock, shares of DATE were consistently making lower highs and lower lows on huge volume, which is bearish price action. Now the stock has started to find some buying support at around $5.50 to $5.61 a share, and its setting up to trigger a number of breakouts.
Traders should watch DATE to trigger a breakout trade if this stock can manage to sustain a high-volume move and close back above some near-term overhead resistance at $7.10 and back above its 50-day moving average of $7.14 a share. Look for volume on that move that's near or above its three-month average action of 118,755 shares. If we get that move soon, then look for DATE to hit $7.78 a share. I would add to any long positions off the breakout once $7.78 is taken out with volume. If $7.78 does get taken out, then look for DATE to run towards $9 to $10 a share.