Albany Molecular Research
One stock that's quickly moving within range of triggering a big breakout trade is
Albany Molecular Research (
AMRI), a contract research and manufacturing organization providing customers drug discovery, development and manufacturing services. This stock has been on fire so far in 2013, with shares up sharply by 131%.
If you take a look at the chart for Albany Molecular Research, you'll notice that this stock has been trending sideways for the last two months, with shares moving between $9.95 on the downside and $12.50 on the upside. Shares of AMRI have just recently started to bounce higher off its 50-day moving average at $11.12 a share and are now quickly moving within range of triggering a big breakout trade, which will hit if AMRI manages to take out the upper end of its recent sideways trading chart pattern.
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Traders should now look for long-biased trades in AMRI if it manages to break out above some near-term overhead resistance levels at $12.46 to its 52-week high at $12.50 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 action of 425,164 shares. If that breakout triggers soon, then AMRI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $15 to $17, or even $20 a share.
Traders can look to buy AMRI off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day at $11.12 a share or below some more key near-term support at $10.50 a share. One could also buy AMRI off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.