NEW YORK (TheStreet) -- The price of TeleCommunication Systems (TSYS) has been trending higher for more than two years but we just got a dramatic upside breakout. Further gains appear likely.

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In the chart above, we see a stair-step rally with support being established every $0.25 higher at $2.75, $3.00, and $3.25. But the most recent rally did not correct to $3.50, it corrected sideways and then raced sharply higher. Our favorite indicator has a bullish alignment.

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This longer picture of TSYS shows that the current advance got started in the middle of 2012 with supportive technical studies and a rising 40-week moving average. Prices are on the extended side of things, so waiting for a sideways correction or a two-day dip would be our preferred way to enter the long side.