China Jo-Jo Drugstores
Another under-$10 drug retailer that's starting to move within range of triggering a big breakout trade is China Jo-Jo Drugstores
(CJJD), which operates as a retailer and distributor of pharmaceutical and other health care products in the People's Republic of China. This stock has been on fire for the last three months, with shares ripping higher by 46%.
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If you take a look at the chart for China Jo-Jo Drugstores you'll notice that this stock has been uptrending strong over the last month and change, with shares moving higher from its low of 65 cents per share to its recent high of $1.18 a share. During that uptrend, shares of CJJD have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of CJJD within range of triggering a big breakout trade above some near-term and past overhead resistance levels.
Market players should now look for long-biased trades in CJJD if it manages to break out above some near-term overhead resistance at $1.18 a share and then once it clears some past overhead resistance levels at $1.21 to $1.32 a share 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 99,122 shares. If that breakout hits soon, then CJJD will set up to re-test or possibly take out its next major overhead resistance levels at $1.70 to its 52-week high at $1.99 a share.
Traders can look to buy CJJD off weakness to anticipate that breakout and simply use a stop that sits just below its 50-day moving average of 98 cents per share. One can also buy CJJD off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.
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