TAL Education Group
Another under-$10 stock that's setting up to trigger a near-term breakout trade is TAL Education Group (XRS - Get Report), a holding company for a group of companies engaged in the provision of after-school tutoring programs for primary and secondary school students in the People's Republic of China. This stock is off to a slow start so far in 2012, with shares down by around 12%.
If you take a look at the chart for TAL Education Group, you'll see that this stock has been uptrending rather strong for the last month and change, with shares rising from a low of $6.97 to its recent high of $8.72 a share. During that uptrend, shares of XRS have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed XRS within range of triggering a near-term breakout trade.Market players should now look for long-biased trades in XRS as long as it's trending above its 50-day at $8.72, and then once it manages to trigger a break out above some near-term overhead resistance levels at $9.03 to $9.16 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 86,415 shares. If that breakout triggers soon, then XRS will setup to re-test and possibly take out its next major overhead resistance levels at $10.04 to $10.31, and at $11 to $11.37 a share. Traders can look to buy XRS off any weakness as long as it maintains its trend above its 50-day at $8.21 a share. You could also buy off strength once XRS clears those breakout levels with volume, and simply use a stop just below some near-term support at $8.65 to $8.50 a share.