4 Stocks You Should Watch Because They're Breaking Out Higher

Here are four stocks breaking out and making strong technical moves that investors should watch.

1. Aerie Pharmaceuticals (AERI)

This stock, which more than doubled to the $40 area in September, pulled back in October but has rallied in the last 10 days, bouncing off its 50-day moving average and its channel bottom.

On Tuesday it was up another $2.20 to $41.95 on no news, getting right back up to its recent highs. Watch for a move toward the channel top near $49.

2. Finisar (FNSR)  

Finisar, which has been acting great all year, spiked up on earnings in September and kept on running. When the optical-component stock reached resistance in early October at the rising channel top, it had a 3-wave corrective pullback to the channel bottom and 50-day moving average, and then broke back out again last week. On Tuesday, it gained another 85 cents to $31.70 on 1.4 million shares traded. The short-term target is $35-$37, and then the low- to mid-$40s in the intermediate term.

3. Tower Semiconductor  (TSEM)

Shares of this company popped through a resistance zone on Tuesday, gaining 95 cents, or 5.7%, to $17 on 2.4 million shares traded. That's the second biggest volume on an up day since February 2015, and it came on news that the Israel-based chipmaker reported a third-quarter profit. Watch for a quick test of the $18.20-$18.30 zone last reached in early 2015. Beyond that, it could make a run at the channel top near $23.

4. Vuzix (VUZI)

This stock popped through its 50-day moving average and lateral resistance on Tuesday, gaining 65 cents, or 8.7%, to $8.05, on 528,900 shares traded. Stock in the wearable-device maker did pull back from its intraday high at $8.25, but momentum is strong. The stock has been up in six of the last seven sessions and looks poised to make a run at the September highs in the $9.50-$9.75 zone.

See Harry's video chart analysis on these stocks.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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