Another stock that looks poised to trigger a near-term breakout trade is
), a biopharmaceutical company that provides prescription drugs for the treatment of multiple sclerosis, nephrotic syndrome and infantile spasms indications. This stock has been in play with the bulls so far in 2013, with shares up big by 84%.
If you take a look at the chart for Questcor Pharmaceuticals, you'll notice that this stock has been uptrending strong for the last month, with shares soaring higher from its low of $42.01 to its intraday high of $49.71 a share. During that uptrend, shares of QCOR have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of QCOR within range of triggering a near-term breakout trade.
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Market players should now look for long-biased trades in QCOR if it manages to break out above some near-term overhead resistance at $50.20 a share with high volume. Look for a sustained move or close above that level with volume that registers near or above its three-month average action of 1.98 million shares. If that breakout triggers soon, then QCOR will set up to re-test or possibly take out its three-year high at $57.53 a share. Any high-volume move above that level will then give QCOR a chance to trend well north of $60 a share.
Traders can look to buy QCOR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $46 a share. One could also buy QCOR off strength once it takes out $50.20 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.