Gentiva Health Services
Another stock that's setting up to trigger a near-term breakout trade is Gentiva Health Services (GTIV), which is engaged in providing home health services and hospice services. This stock hasn't done much so far in 2012, with shares up just 5% so far.
If you look at the chart for Gentiva Health Services, you'll see that this stock formed a major top back in April and May at around $9 a share, and then subsequently went on to crash lower to its recent low of $5.13 a share. During that monster move lower, shares of Gentiva Health Services were making lower highs and lower lows, which is bearish technical price action. That said, after tagging that $5.13 low, this stock started to reverse course and uptrend back above both its 50-day and 200-day moving averages. That move has now pushed GTIV within range of triggering a near-term breakout trade.
Traders should now look for long-biased traders in GTIV if this stock can manage to take out some near-term overhead resistance levels at $7.24 to $7.33 a share with high volume. Look for a sustained move or close above those levels with volume that's near or above its three-month average action of 277,416 shares. If we get that action soon, then GTIV will have a great chance of re-testing and possibly taking out that former top at around $9 a share.One could be a buyer of GTIV off any weakness, and simply use a stop that sites just below its 50-day moving average of $6.79 a share. You could also just buy off strength once GTIV takes out $7.24 to $7.33 with high volume, and then use a stop just under $6.94 a share.
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