Market players should now look for long-biased trades in AEGR once it manages to break out above some near-term overhead resistance at $23 a share with high volume. Look for a sustained move or close above $23 a share with volume that registers near or above its three-month average action of 449,761 shares. If that breakout triggers soon, then AEGR will set up to re-test or possibly take out its all-time high of $25.92 a share.
One can look to buy AEGR off any weakness to anticipate that breakout and simply use a stop that sits close to some near-term support at $19.92 a share. Traders can also buy off strength once AEGR clears $23 a share with high volume and then use a stop that sits near $22 to $21.66 a share.
Zipcar Another stock that's moving within range of triggering a near-term breakout trade is Zipcar (ZIP), which operates car sharing network. It provides the freedom of 'wheels when you want them' to over 560,000 Zipsters. This stock has been a favorite target of the bears in 2012, with shares down by 37%.
If you look at the chart for Zipcar, you'll see that this stock has been uptrending strongly during the last month, with shares soaring from a low of $5.90 to its recent high of $8.64 a share. During that uptrend, shares of ZIP have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed ZIP within range of triggering a near-term breakout trade.Traders should now look for long-biased trades in ZIP once it manages to break out above some near-term overhead resistance levels at $8.64 to $8.69 a share with high volume. Look for a sustained move or close above those level with volume that hits near or above its three-month average action of 350,502 shares. If that breakout triggers soon, then ZIP will set up to re-test or possibly take out its next major overhead resistance levels at $10.20 to $12 a share. If that breakout hits, then ZIP will also move into a previous gap down zone from August that started at around $10 a share.
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