One stock in the communications services complex that looks ready to trigger a big breakout trade is 8x8 (EGHT), which develops and markets telecommunications services for Internet protocol, telephony and video applications, as well as Web-based conferencing and unified communications services, managed hosting and cloud-based computing services. This stock is off to a decent start in 2012, with shares up over 25%.
If you look at the chart for 8x8, you'll notice that this stock has been trading range bound for the past few months, between $3.76 and $4.33 a share. This range for 8x8 has created a base for the stock since buyers have consistently supported the price whenever it's pulled back under $4 toward $3.80 a share. On Thursday, shares of 8x8 soared back above both its 50-day and 200-day moving averages with heavy volume. Volume clocked in at 1.64 million shares which are well above its three-month average volume of 569,934 shares. That bullish action has now pushed 8x8 with range of triggering a major breakout trade.
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