Another stock that's trending within range of triggering a near-term breakout trade is Impac Mortgage (IMH - Get Report), which operations include the mortgage and real estate fee-based business activities conducted by its subsidiaries, Integrated Real Estate Service, IMH Assets and Impac Funding. This stock has been on fire during the last six months, with shares up 240%.
If you take a look at the chart for Impac Mortgage, you'll notice that this stock has just started to trend back above its 50-day moving average of $13.40 a share with decent upside volume flows. This move is quickly pushing shares of IMH within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in IMH if it manages to break out above some near-term overhead resistance levels at $14.69 to $15.50 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 volume of 83,174 shares. If that breakout triggers soon, then IMH will set up to re-test or possibly take out its next major overhead resistance levels near $17 to $18 a share. Any high-volume move above $18 would then push shares of IMH into new 52-week high territory, which is bullish technical price action. Some possible targets off that move are $20 to $22 a share.Traders can look to buy IMH off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $13.40 a share. One could also buy off strength once IMH clears those breakout levels with volume and then simply use a stop that sits just below $14 a share. This stock is popular among the short-sellers, since its current short interest as a percentage of its float is 10.4%. When you combine that short interest with its low float of just 6.49 million shares, then you have a recipe for a big move if that breakout triggers soon.