Another stock that's quickly moving within range of triggering a near-term breakout trade is QuinStreet (QNST - Get Report), an online media and marketing company that provides vertically oriented customer acquisition programs for its clients. This stock has been dumped by the sellers during the last six months, with shares off sharply by 30%.
If you look at the chart for QuinStreet, you'll see that this stock has just started to move back above its 50-day moving average at $6 a share. This move is quickly pushing shares of QNST within range of triggering a near-term breakout trade.
Market players should now look for long-biased trades in QNST once it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $6 a share and then once it clears more overhead resistance at $6.20 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 122,058 shares. If that breakout triggers soon, then QNST will set up to re-test or possibly take its next major overhead resistance levels at $6.65 to $6.95 a share. Any high-volume move above those levels will then put its 200-day moving average of $7.53 into range for shares of QNST.Traders can look to buy QNST off any weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support at $5.56 a share. One can also buy QNST off strength once it clears those breakout levels with volume and then simply use a stop that sits a few percentage points below its 50-day moving average of $6 a share. Keep in mind that this stock is popular among the short sellers, since the current short interest as a percentage of the float for QNST is rather high at 9%. If that breakout triggers soon, then I think we could see a short-squeeze develop for shares of QNST.