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One software player that insiders are jumping into here is Cerner ( CERN), a supplier of health care information technology solutions, services, devices and hardware. Cerner solutions optimize processes for healthcare organizations. Insiders are buying this stock into some solid strength here, since shares are up over 18% so far in 2012.

Cerner has a market cap of $12.62 billion and an enterprise value of $11.78 billion. This stock trades at a premium valuation, with a trailing price-to-earnings of 36.34 and a forward price-to-earnings of 26.62. Its estimated growth rate for this year is 26.2%, and for next year it's pegged at 17.4%. This is a cash-rich company, since the total cash position on its balance sheet is $980 million, and its total debt is $176.08 million.

A director just bought 14,000 shares, or around $1.02 million worth of stock, at $73.52 per share.

From a technical perspective, CERN is currently trading above its 200-day moving average and below its 50-day moving average, which is neutral trendwise. This stock has been downtrending badly for the last two months, with shares falling from $88.32 to a recent low of $70.37 a share. During that downtrend, shares of CERN were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of CERN have now formed a double bottom at $70.37 to $70.63 a share, and it looks poised to trigger a near-term breakout trade.

If you're bullish on CERN, then I would look for long-biased trades once this stock manages to break out above some near-term overhead resistance levels at $74.20 to $74.50 a share, and then above its 50-day moving average of $75.54 a share with 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 1,415,740 shares. If that breakout triggers soon, then look for CERN to re-test and possibly take out its next significant overhead resistance level at $78.53 to $82 a share. On the flipside, I would avoid CERN or look for short-biased trades if it fails to trigger that breakout soon, and then drops back below its double bottom levels at $70.63 to $70.37 a share with high volume. If we get that action, then CERN will likely re-test or possibly take out its next major support level at $67.50 a share.

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