Another stock that looks poised to trigger a near-term breakout trade is Anika Therapeutics (ANIK - Get Report), which develops, manufactures and commercializes therapeutic products for tissue protection, healing and repair. This stock has been blazing a trail to the upside so far in 2013, with shares up a whopping 43%.
If you look at the chart for Anika Therapeutics, you'll notice that this stock has been trending sideways for the last month, with shares moving between $14.58 on the upside and $13.21 on the downside. Shares of ANIK have recently spiked higher off that $13.21 low, and it's now quickly moving within range of triggering a near-term breakout trade above the upper-end of its recent sideways chart pattern.
Traders should now look for long-biased trades in ANIK if it manages to break out above some near-term overhead resistance levels at $14.48 to $14.58 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 89,389 shares. If that breakout triggers soon, then ANIK will set up to re-test or possibly take out its next major overhead resistance levels at $15.50 to $16.29 a share. Any high-volume move above those levels will then put its 52-week high of $17.70 into range for shares of ANIK.Traders can look to buy ANIK off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $13.50 to $13.21 a share. One can also buy off strength once ANIK takes out those breakout levels with volume and then simply use a stop that sits just below $14 a share.
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