American Apparel

American Apparel (APP) engages in the design, manufacture, distribution and sale of branded fashion basic apparel products and clothing and accessories for women, men, children and babies. This stock closed up 6.7% to $1.43 a share in Tuesday's trading session.

Tuesday's Range: $1.35-$1.45
52-Week Range: $1.00-$2.40
Tuesday's Volume: 1.76 million
Three-Month Average Volume: 733,902

From a technical perspective, APP ripped higher here with monster upside volume. This stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $1.01 to its intraday high of $1.45. During that uptrend, shares of APP have been consistently making higher lows and higher highs, which is bullish technical price action. This move is now pushing shares of APP within range of triggering a near-term breakout trade. That trade will hit if APP manages to take out Tuesday's high of $1.45 to some more near-term overhead resistance at $1.52 with high volume.

Traders should now look for long-biased trades in APP as long as it's trending above Thursday's low of $1.35 or above $1.30 and then once it sustains a move or close above those breakout levels with volume that hits near or above 733,902 shares. If that breakout hits soon, then APP will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $1.62 to $1.70. Any high-volume move above those levels will then give APP a chance to tag $1.80 to $1.90, or even $2.

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