One more stock that's starting to trigger a big breakout trade today is
(TSYS - Get Report)
, a global supplier of automatic test equipment. This stock is off to a monster start in 2012 with shares up over 28%.
If you look at the chart for TeleCommunication Systems, you'll notice that the sellers nailed this stock good taking it down from its October high of $4.03 to a recent low of $2.10 a share. After hitting that low, this stock saw buyers come in and support the price at around $2.25 to $2.30 a share on a number of trading sessions. Now shares of TeleCommunications Systems are starting to break out above some near-term overhead resistance levels.
Traders should now watch for TSYS to take out some near-term overhead resistance at $2.93 to $2.98 a share on high-volume. Watch for a move over those levels where volume hits close to or well above its three-month average action of 448,485 shares. A sustained high-volume move and close above those levels should set this stock up to trend back toward $3.38 to $3.71 (its 200-day) a share, or possibly much higher.
Market players should now look for long biased trades since TSYS is starting to move above those levels today and volume is decent. At last check, volume is over 382,000 shares and TSYS has hit a daily high of $3.09. I would keep a tight mental stop on this at around $2.65 to $2.80 a share if you get long off weakness. If this breakout is the real deal, then I doubt it even gets back under todays low of $2.85 a share.
To see more breakout candidates like
Kodiak Oil & Gas
Sun Healthcare Group
, check out the
Breakout Stocks of the Week
portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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