Veeco Instruments

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Nearest Resistance: N/A

Nearest Support: $33

Catalyst: Positive Q1 Earnings

Small-cap electronic component maker Veeco Instruments ( VECO) is rallying hard today following positive first quarter results. Shares are up more than 15% this afternoon after stomping expectations: while analysts had only expected the company to earn 19 cents per share, Veeco actually pulled in 49 cents per share.

>>3 Tech Stocks to Buy on a Pullback

For traders, there are even bigger technical implications coming from this stock.

Much like ETP, Veeco is showing us the combination of new highs and a technical breakout. Today's strong gap up pushed VECO above former resistance at $33, generating a buy signal for shares. While today's trading range has been somewhat volatile, a close above $33 today followed by a second consecutive open above that level tomorrow morning is strong enough confirmation to consider buying shares.

I'd recommend putting in a stop just below $33.

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