Cyan

 

Another stock that's starting to trend within range of triggering a big breakout trade is Cyan (CYNI), which provides carrier-grade networking solutions that transform disparate and inefficient legacy networks into open, high-performance networks. This stock has been destroyed by the bears so far in 2013, with shares off sharply by 60%.

>>5 Stocks With Big Insider Buying

If you take a look at the chart for Cyan, youll notice that this stock has been trending sideways and consolidating for the last month and change, with shares moving between $3.92 on the downside and $4.47 on the upside. Shares of CYNI are now started to spike higher off some near-term support at $4.14 a share. That move is quickly pushing shares of CYNI within range of triggering a big breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in CYNI if it manages to break out above some near-term overhead resistance levels at $4.50 to $4.47 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 353,208 shares. If that breakout triggers soon, then CYNI will set up to re-test or possibly take out its next major overhead resistance levels at $5.38 to its 50-day moving average of $5.49 a share. Any high-volume move above those levels will then give CYNI a chance to tag $6, or re-fill some of its previous gap down zone from November that started just above $8 a share.

Traders can look to buy CYNI off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $3.92 a share. One could also buy CYNI off strength once it starts to clear 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

This Market Knows No Fear

Negative Seasonality May Finally Be Kicking In

Strong Action in Individual Stocks Starts to Feel a Bit Frothy

There Still Is a Bid Under the Market

Stocks Come Off Highs as Apple Wait Counters Boost From Tax Reform Talk