One name in the health care facilities complex that's trending within range of triggering a near-term breakout trade is LCA-Vision (LCAV), a provider of fixed-site laser vision correction services at its LasikPlus vision centers.
If you take a look at the chart for LCA-Vision, you'll see that this stock has been downtrending badly since it formed a double top back in April at around $7.50 a share. Following that double top, shares of LCAV had just one powerful bounce from $4.28 to $6.19, but shares went on to trend lower after that move and eventually tag a recent low of $3.49 a share. That said, shares of LCAV have now entered a sideways trading pattern for the last month and change between $3.49 and $4.09 a share.
On Thursday, LCAV saw a massive volume expansion after the stock closed up 8% to $4.02 a share with volume of 610,000 shares. That volume spike was dramatically higher than LCAV's three-month average action of 76,923 shares. That move also pushed LCAV within range of triggering a major breakout trade, and it spiked the stock back above its 50-day moving average of $3.87 a share. That powerful move and volume could be signaling that LCAV is ready to explode much higher.>>5 Stocks With Big Insider Buying Traders should now look for long-biased trades in LCAV once it manages to break out above some near-term overhead resistance levels at $3.96 to $4.09 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 76,923 shares. If that breakout triggers soon, then LCAV will have a great chance to re-test and possibly take out its next major overhead resistance levels at $4.60 to $5.11 a share. If that huge volume on Thursday is any indicator, then LCAV could easily hit $6 to $7 a share once it clears its 200-day moving average at $5.11 with volume. One could look to buy LCAV off any weakness and simply anticipate that breakout, with a stop just below $3.50 a share. One could also just buy off strength once LCAV clears $4.09 a share with decent volume. And then use a stop either below Thursday's low of $3.62 or just below $3.50 a share.