Sears Holdings

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Sears Holdings ( SHLD) operates as a specialty retailer in the U.S. and Canada. The company's Kmart segment operates stores that sell merchandise under Jaclyn Smith and Joe Boxer labels; and Sears brand products, such as Kenmore, Craftsman, and Diehard. This stock is trading up 5.5% at $54.29 in recent trading.

Today's Volume: 1.2 million

Average Volume: 727,055

Volume % Change: 179%

Shares of SHLD are ripping higher today after the firm said it plans to spin off a company that will be publicly traded and control roughly 1,200 small but generally profitable franchised stores that sell Sears products, as well as its stores called Hometown.

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From a technical perspective, SHLD is gapping up sharply here back above its 50-day moving average of $52.86 with above average volume. This move is quickly pushing SHLD within range of triggering a major breakout trade. That trade will hit once SHLD takes out some near-term overhead resistance levels at $55.50, and then its 200-day moving average of $56.24 with high volume.

Traders should now look for long-biased trades in SHLD as long as its trending above its 50-day, and then once it sustains a move or close above $55.50 to $56.24 with volume that's near or above 727,055 shares. If that breakout triggers soon, then look for SHLD to re-test and possibly take out its next major overhead resistance level at $62.95.

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