Natural Grocers by Vitamin Cottage
One stock that's quickly moving within range of triggering a major breakout trade is Natural Grocers by Vitamin Cottage (NGVC - Get Report), a specialty retailer of natural and organic groceries and dietary supplements. This stock has been trending strong so far in 2013, with shares up 15.7%.
After the market close on Thursday, this company reported an impressive net sales increase of 28.1% to $95.8 million and a comparable store sales increase of 12.9%. Gross profit during the first quarter also increased 28.9% over the same period last year to $27.8 million.
If you look at the chart for Natural Grocers by Vitamin Cottage, you'll notice that the stock is gapping sharply higher today right above its 50-day moving average of $19.76 a share with lighter-than-average volume. Volume so far today has hit 52,000 shares, which is half of its three-month average daily volume of 111,408 shares. This move is quickly pushing shares of NGVC within range of triggering a major breakout trade.Market players should now look for long-biased trades in NGVC once it manages to break out above some near-term overhead resistance at $22.46 a share with high volume. Look for a sustained move or close above $22.46 a share with volume that hits near or above its three-month average action of 111,408 shares. If that breakout triggers soon, then NGVC will set up to re-test or possibly take its 52-week high and its all-time high of $25 a share. Traders can look to buy NGVC off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $19.76 a share or right below today's low of $20.55 a share. One can also buy off strength once NGVC clears $22.46 a share with volume and then use a stop that sits right below $21.50 a share or $20.54 a share. This stock is a favorite target of the bears, since its current short interest as a percentage of its float stands at 14.7%. If that breakout triggers soon, then shares of NGVC could easily see a monster short-squeeze develop quickly. If shares of NGVC ever take out $25 with volume, then the bears will be in serious trouble because there will be no more overhead resistance for the stock to contend with.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts