One under-$10 name that's trending very close to triggering a major breakout trade is Accuride (ACW - Get Report), which is s a manufacturers & suppliers of commercial vehicle components in North America. This stock has been hammered by the bears during the last six months, with shares down by 46%.
If you take a look at the chart for Accuride, you'll notice that this stock has been uptrending strongly for the last two months, with shares moving higher from a low of $2.21 to its recent high of $3.39 a share. During that uptrend, shares of ACW have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed ACW within range of triggering a major breakout trade.
Traders should now look for long-biased trades in ACW if it manages to break out above some near-term overhead resistance levels at $3.20 to $3.39 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 528,662 shares. If that breakout hits soon, then ACW will set up to re-test or possibly take out its next major overhead resistance levels at $4.50 to $5 a share. Any high-volume move above $5 would then put $5.27 to $5.45 into focus for shares of ACW.Traders can look to buy ACW off any weakness and simply use a stop that sits just below its 50-day moving average of $2.78 a share. One could also buy ACW off strength once it clears those breakout levels with volume and then simply use a stop that sits just below $3 to $2.94 a share.
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