Pacira Pharmaceuticals ( PCRX) is another healthcare stock that's got breakout potential this week. That's thanks to a bullish inverse head and shoulders pattern that's been forming in shares of the small-cap pharma name since early March. The setup in PCRX may not be textbook, but it's tradable. >>3 Big Stocks on Traders' Radars Pacira is currently forming an inverse head and shoulders pattern, a popular setup that indicates exhaustion among sellers. The pattern is formed by two swing lows that bottom out around the same level (the shoulders), separated by a bigger dip called the head; the sell signal comes on the move above the pattern's "neckline" level, right at $30. PCRX has made a few intraday moves above $30, so it's important to keep confirmation in mind here. I wouldn't consider the breakout complete unless a close above $30 is followed by an open above it the following session. Momentum, a leading indicator of price, adds some extra confidence to this trade. 14-day RSI (at the top of the chart) broke its downtrend at the start of May, when PCRX started forming its head. Since then, it's been in an uptrend. Watch for the breakout before jumping into this tiny name. You don't want to be early to the party.