One stock in the audio and video equipment complex that's starting to trigger a big breakout trade here is
(NEON - Get Report)
, which provides optical infrared touchscreen solutions for handheld and small to midsized consumer and industrial electronic devices. This stock is one of the hottest names around, with shares up over 100% in the last three months.
If you look at the chart for Neonode, you'll see that this stock has been ripping to the upside since early April when it bottomed at around $2.85 a share. During that large move higher, shares of Neonode have been uptrending strong and making higher lows and higher highs, which is bullish
technical price action
. That move has seen a number of upside volume days during the last two months register above average volume. Now NEON has started to trigger a major
today since the stock is taking out some near-term overhead resistance at $6.80 a share with strong volume.
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Traders should now continue to look for long-biased trades as long as NEON is trending above today's low of $6.61 to $6.80 a share with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 468,530 shares are bullish. At last check, volume today has hit over 800,000 shares with the stock up 9.3% to $7.11 a share. This strong move today has also pushed NEON into new 52-week-high territory.
If we continue to see NEON hold its trend above that breakout level of $6.80 a share, then this stock could easily be on its way toward $10 a share or possibly even higher. I would look to buy this stock off weakness and simply use a stop near $6.80 to $6.61 a share.