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.
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.