Atossa Genetics

Another health care player that's quickly moving within range of triggering a major breakout trade is Atossa Genetics ( ATOS), which is involved in the prevention of breast cancer through the commercialization of diagnostic medical devices and laboratory developed tests that can detect precursors to breast cancer. This stock has been hit hard by the bears so far in 2013, with shares off sharply by 34%.

>>4 Stocks Under $10 to Trade for Breakouts

If you look at the chart for Atossa Genetics, you'll notice that this stock has been uptrending strong over the last month and change, with shares moving higher from its low of $1.74 to its recent high of $2.73 a share. During that uptrend, shares of ATOS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ATOS within range of triggering a major breakout trade.

Traders should now look for long-biased trades in ATOS if it manages to break out above its 50-day moving average of $2.55 a share to more near-term overhead resistance at $2.73 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 455,805 shares. If that breakout triggers soon, then ATOS will set up to re-test or possibly take out its gap down day high from October at $3.18 a share. Any high-volume move above $3.18 will then give ATOS a chance to re-fill some of its previous gap down zone that started near $5.50 a share.

Traders can look to buy ATOS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $2.24 a share, or around $2 a share. One can also buy ATOS off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

If you liked this article you might like

Bids in Groundbreaking Wireless Spectrum Auction Top $18 Billion

Why It Might Be Time for Time Inc. to Sell Itself

Buffett, Once Bitten, Is No Longer Shy When It Comes to Airlines

Is Trump a Bad Omen or Simply a Black Swan for TV Political Advertising?

The 'Trump Effect' Hits TV Broadcasters