Alliance HealthCare Services

One under-$10 stock in the healthcare facilities complex that's trending very close to triggering a major breakout trade is Alliance HealthCare Services ( AIQ). This company provides diagnostic imaging services and therapeutic services primarily to hospitals and other healthcare providers on a shared-service and full-time service basis. This stock has been on fire during the last three months, with shares up a whopping 60%.

If you look at the chart for Alliance HealthCare Services, you'll notice that this stock has been coiling up and trading in a tight sideways trading pattern for the last two months, with shares moving between $1.20 on the downside and $1.50 on the upside. That tight trading pattern could be setting up AIQ for a powerful move higher if the stock can manage to break topside with volume soon.

Traders should now look for long-biased trades in AIQ once it manages to break out above some near-term overhead resistance levels at $1.46 to $1.50 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 96,479 shares. If that breakout triggers soon, then AIQ will set up to re-test or possibly take out its next major overhead resistance levels at $1.86 to $2.19 a share. Any high-volume move above $2.19 could even send AIQ to $3 or higher.

Traders can look to buy AIQ off weakness long as its trending above its 50-day at $1.37 a share, or above its 200-day at $1.24 a share with strong upside volume flows. Or you can buy off strength once it takes out $1.46 to $1.50 a share with volume, and then simply use a stop that sits right below its 50-day at $1.37 a share.

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