Another under-$10 stock that's trading very close to triggering a near-term breakout trade is medical equipment and supplies player Cytori Therapeutics (CYTX - Get Report), which develops, manufactures, and sells medical products and devices to enable the practice of regenerative medicine. This stock has been on fire in a big way so far in 2012, with shares up a whopping 94%.
If you take a look at the chart for Cytori Therapeutics, you'll see that this stock has been in a monster uptrend for the last six months, with shares skyrocketing from a low of $2.01 to its recent high of $4.93 a share. During that uptrend, shares of CYTX have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed CYTX within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in CYTX if it can manage to trigger a break out above some near-term overhead resistance levels at $4.47 to $4.93 a share with high volume. Look for a sustained move or close above those levels with volume that hits close to or above its three-month average action of 409,383 shares. If that breakout triggers soon, then look for CYTX to re-test or possibly take out its next major overhead resistance levels at $5.72 to $7.50 a share.Traders can look to get long CYTX off any weakness, and simply use a stop that sits right below some near-term support levels at $3.85 to $3.61 a share. One could also buy CYTX off strength once it clears those breakout levels with volume, and then simply use a stop just below $4.50 a share.