Another stock that's quickly trending within range of triggering a major breakout trade is
Amtech Systems (
ASYS), which is a supplier of horizontal diffusion furnace systems used for solar cell and semiconductor manufacturing. This stock is off to a decent start in 2013, with shares up 18.6%.
If you look at the chart for Amtech Systems, you'll notice that this stock is spiking sharply higher today back above both its 200-day moving average at $3.66 a share and above its 50-day moving average at $3.79 a share with above-average volume. This move is quickly pushing shares of ASYS within range of triggering a major breakout above some key near-term overhead resistance levels.
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Traders should now look for long-biased trades in ASYS if it manages to break out above some near-term overhead resistance levels at $3.93 to $4.08 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 volume of 36,648 shares. If that breakout triggers soon, then ASYS will set up to re-test or possibly take out its next major overhead resistance levels at $4.85 to $4.98 a share. Any high-volume move above $4.98 will then put $6 a share into range for shares of ASYS.
Traders can look to buy ASYS off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day at $3.66 a share or around some key near-term support at $3.40 a share. One can also buy ASYS off strength once it takes out those breakout levels with volume and then simply use a stop just below its 200-day at $3.66 a share.