Another stock that's moving within range of triggering a near-term breakout trade is TeleCommunication Systems (TSYS - Get Report), which develops and delivers reliable and secure wireless communication technology. This stock has exploded higher during the last six months, with shares up a whopping 84%.
If you look at the chart for TeleCommunication Systems, you'll see that this stock is ripping higher today back above its 50-day moving average of $2.40 a share with monster upside volume. The volume on the day has already registered over 848,000 shares, which is well above its three-month average action of 266,832 shares. This move is quickly pushing shares of TSYS within range of triggering a near-term breakout trade.
Traders should now look for long-biased trades in TSYS once it manages to break out above some near-term overhead resistance levels at $2.65 to $2.70 a share and then once it takes out more resistance at $2.89 to $3.09 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 266,832 shares. If that breakout triggers soon, then TSYS will set up to re-test or possibly take out its next major overhead resistance levels at $4.09 to $4.30 a share. Any high-volume move above $4.30 will then put $5.57 into range for shares of TSYS.Traders can look to buy TSYS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $2.17 a share. One can also buy off strength once TSYS takes out those breakout levels with volume and then simply use a stop right below its 50-day moving average of $2.40 a share.