Zhone Technologies

Zhone Technologies ( ZHNE) designs, develops and manufactures communications network equipment for telecommunications, wireless and cable operators worldwide. This stock closed up 5% to $3.95 in Tuesday's trading session.

Tuesday's Range: $3.70-$4.06
52-Week Range: $0.40-$4.58
Tuesday's Volume: 567,000
Three-Month Average Volume: 871,360

From a technical perspective, ZHNE trended higher here right above its 50-day moving average of $3.56 with lighter-than-average volume. This stock recently pulled back off its 52-week high of $4.58 to its recent low of $3.61. Shares of ZHNE have now started to find some buying interest each time it has traded near its 50-day over the last few weeks. This action is now starting to push shares of ZHNE within range of triggering a major breakout trade. That trade will hit if ZHNE manages to take out some key near-term overhead resistance at $4.10 and then once it clears more resistance at $4.48 to its 52-week high at $4.58 with high volume.

Traders should now look for long-biased trades in ZHNE as long as it's trending above its 50-day at $3.56 or above more support at $3.25 and then once it sustains a move or close above those breakout levels with volume that hits near or above 871,360 shares. If that breakout hits soon, then ZHNE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $5.50 to $6.50

Aeropostale

Aeropostale ( ARO) operates as a mall-based retailer of casual apparel and accessories for young women and men in the U.S. This stock closed up 3.9% to $9.51 in Tuesday's trading session.

Tuesday's Range: $9.07-$9.61
52-Week Range: $7.78-$17.10
Tuesday's Volume: 3.37 million
Three-Month Average Volume: 3.74 million

From a technical perspective, ARO trended higher here right off its 50-day moving average of $9.24 with solid upside volume. This move is quickly pushing shares of ARO within range of triggering a near-term breakout trade. That trade will hit if ARO manages to take out some key near-term overhead resistance levels at $9.68 to $9.92 with high volume.

Traders should now look for long-biased trades in ARO as long as it's trending above some near-term support at $9 or above $8.50 and then once it sustains a move or close above those breakout levels with volume that hits near or above 3.74 million shares. If that breakout hits soon, then ARO will set up to re-test or possibly take out its next major overhead resistance level at $10.47. Any high-volume move above $10.47 will then give ARO a chance to tag $11 to $11.50.

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