One stock that has seem some sizable insider buying recently is SeaChange International ( SEAC), which is engaged in the delivery of multi-screen video. Insiders are hitting the bid on this stock into strength since shares are up 17% so far in 2012. SeaChange International has a market cap of $270 million and an enterprise value of $183 million. This stock trades at a cheap valuation, with a forward price-to-earnings of 10.34. Its estimated growth rate for this year is 26.1%, and for next year it's pegged at 37.9%. This is a cash-rich company, since the total cash position on its balance sheet is $88.44 million and its total debt is zero. A director just bought 150,000 shares, or $1.21 million worth of stock, at $8.12 per share. >>6 Tech Stocks That Rate Better Than Apple From a technical perspective, SEAC is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently found some big buying support at around $6.80, and since then it has run-up to its current price of $8.27 a share. That move has pushed SEAC within range of triggering a near-term breakout trade. If you're bullish on SEAC, I would look for long-biased trades if this stock can manage to break out above some near-term overhead resistance at $8.45 to $8.50 a share with high volume. Look for volume on that move that's near or well above its three-month average volume of 154,354 shares. If we get that action soon, then watch for SEAC to trigger an even bigger breakout over $8.88 a share. If SEAC can manage to take out all of those levels with volume, then look for a move towards $10 to $11 a share in the near future. I would avoid any long trades in SEAC if this stock fails to trigger that breakout, and then drops back below some near-term support $7.70 to $7.58 (its 50-day) a share with heavy volume. A move below those levels with volume will set this stock up for much lower prices in the near-term.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.