One more stock that's trending very close to triggering a major breakout trade is
(BRLI - Get Report)
, which is engaged in providing laboratory testing services, to customers in the greater New York metropolitan area, as well as to customers in other states. This stock is off to a solid start in 2012, with shares 50%.
If you look at the chart for Bio-Reference Laboratories, you'll notice that this stock bottomed recently at around $18.29 a share, which also happened to be right below its 200-day moving average of $19.21 a share. After bottoming at that level, shares of Bio-Reference Laboratories have soared back above its 50-day moving average of $21.60 a share. That move has now pushed BRLI into range of triggering a major breakout trade, since the stock is flirting with new 52-week highs.
Traders should now look for long-biased trades in BRLI as long as it maintains a trend above its key breakout levels at $24.51 to $24.48 a share with high-volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 227,772 shares. If we see BRLI hold that trend, then this stock could easily continue its uptrend towards $30 a share or higher in the near future.
One can buy BRLI off of weakness and simply use a stop around some near-term support at $23 a share. Another way to play BRLI is to buy off strength and get long once it clears $24.48 to $24.51 a share with heavy volume. If you buy off strength, then I would simply use a stop that's a few percentage points below those levels in case that breakout fails to hold.
I also included Bio-Reference recently in "
5 Stocks That Could Pop Post-Earnings
To see more breakout candidates, check out the
Breakout Stocks of the Week
portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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