Another stock that's starting to move within range of triggering a major breakout trade is Venaxis (APPY), which develops products for human diagnostic and animal health therapeutic needs. This stock has hot during the last three months, with shares up by 30%.
If you take a look at the chart for Venaxis, you'll see that this stock has started to bounce today right above its 50-day moving average of $2.42 a share and back above its 200-day moving average of $2.70 a share. This action is quickly pushing APPY within range of triggering a major breakout trade.
Market players should now look for long-biased trades in APPY if it manages to break out above some near-term overhead resistance levels at $2.91 to $2.94 a share and then once it takes out some more overhead resistance levels at $3.17 to $3.18 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 371,216 shares. If that breakout triggers soon, then APPY will set up to re-test or possibly take out its next major overhead resistance levels at $3.50 to $3.96 a share. Any high-volume move above those levels will then put $4 to $4.50 into focus for shares of APPY.Traders can look to buy APPY off any weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of $2.42 a share. One could also buy off strength once APPY clears those breakout levels with volume and then simply use a stop right around its 200-day or 50-day moving averages.
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