One stock that's trading very close to triggering a major breakout trade is Skullcandy (SKUL), which develops and distributes headphones and other audio accessories to retailers throughout the U.S. and to distributors in various countries worldwide. This stock is off to a decent start in 2012, with shares up over 18%.
If you take a look at the chart for Skullcandy, you'll see that this stock pulled back and tagged its 50-day moving average of $13.49 about three times during the last couple of weeks. Each time that SKUL tagged its 50-day, the stock was able to hold that key technical level. Now shares of SKUL have started to move back above its 200-day moving average of $14.54 a share, which is a level the stock has struggled to trend above for the past two months and change. If SKUL can maintain a trend above its 200-day moving average, then the stock will setup to trigger a major near-term breakout trade.
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