First up is $10 billion medial waste disposal company Stericycle ( SRCL). While SRCL has more or less only kept pace with the broad market in 2013, shares are at the point where they're looking primed to pop into December trading. Here's why.
Stericycle is currently forming an ascending triangle setup, a bullish price pattern that's formed by a horizontal resistance level above shares at $120 and uptrending support to the downside. Basically, as SRCL bounces in between those two technically-important price levels, it's getting squeezed closer and closer to a breakout above the $120 level. When that breakout happens, we've got a buy signal.Momentum, measured by 14-day RSI, adds some extra confidence to the trade. The momentum gauge has been in an uptrend of its own in the shorter-term, pointing to increasing buying pressure on shares. This stock has flirted with $120 in the past, so it's important to wait for a confirmed move by sitting on the sidelines until shares clear that price level for two consecutive days. Then, I'd recommend keeping a protective stop on the other side of the 50-day moving average.