From a technical perspective, PCO skyrocketed higher here right off its 200-day moving average of $1.93 and back above its 50-day moving average of $2.04 with lighter-than-average volume. This stock recently formed a triple bottom chart pattern at $1.84, $1.85 and $1.89. Following that bottom, shares of PCO have now started to spike higher and move within range of triggering a near-term breakout trade. That trade will hit if PCO manages to take out some near-term overhead resistance levels at $2.11 to $2.22 with high volume.
Traders should now look for long-biased trades in PCO as long as it's trending above its 200-day at $1.93 or above more near-term support at $1.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 416,625 shares. If that breakout hits soon, then PCO will set up to re-test or possibly take out its next major overhead resistance levels at $2.50 to its 52-week high at $2.71. Any high-volume move above those levels will then give PCO a chance to trend well north of $3.
To see more stocks that are making notable moves higher today, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.
-- Written by Roberto Pedone in Delafield, Wis.
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