Another technology player that's starting to trend within range of triggering a big breakout trade is NQ Mobile (NQ), which provides mobile Internet services in the areas of mobile security, privacy, productivity, personalized cloud and family protection. This stock is off to a decent start in 2014, with shares up notably by 12.7%.
If you take a look at the chart for NQ Mobile, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $10.53 to its recent high of $18.50 a share with strong upside volume flows. During that uptrend, shares of NQ have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NQ within range of triggering a big breakout trade above some near-term overhead resistance levels.
Traders should now look for long-biased trades in NQ if it manages to break out above some near-term overhead resistance levels at $18 to $18.50 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 5.15 million shares. If that breakout triggers soon, then NQ will set up to re-test or possibly take out its next major overhead resistance levels at $22 to $24 a share.
Traders can look to buy NQ off any weakness to anticipate that breakout and simply use a stop that sits just below some key near-term support at $14.28 a share, or around its 200-day moving average of $13.74 a share. One can also buy NQ 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.