Another stock that's trading within range of a major breakout trade is retail player Zumiez (ZUMZ). This company is a specialty retailer of action-sports-related apparel, footwear, equipment and accessories operating under the Zumiez brand name. This stock is off to a strong start in 2012 with shares up around 35%.
If you take a look at the chart for Zumiez, you'll notice that this stock has been uptrending strong for the last six months, with shares soaring from $22.57 to a recent high of $38.99 a share. During that monster move to the upside, shares of Zumiez have consistently made higher lows and higher highs, which is bullish technical price action. That bullish trend for Zumiez has now pushed the stock within range of triggering a major breakout trade.Market players should now look for long-biased traders in ZUMZ if it can manage to trigger a near-term breakout trade above some overhead resistance at $37.71 to $38.99 a share with high volume. Look for a sustained move or close above those levels with volume that registers close to or above its three-month average action of 417,069 shares. If we get that action soon, then ZUMZ will enter new 52-week high territory. That could easily push the stock north of $40 towards $50 a share very quickly. I would look to play that breakout for ZUMZ if it hits once the stock clears $37.71 to $38.99 with high volume, and simply use a stop a few percentage points below that level. I would completely avoid any long trades on ZUMZ if it fails to trigger that move and then drops back below its 50-day moving average of $35.76 with heavy volume.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV