Saturday, November 12, 2011 9:45:35 PM
Pacific Sunwear (PSUN) -
http://stockpickr.com/5-stocks-setting-break-out.html-12
>>> Another stock that’s very close to triggering a major breakout is Pacific Sunwear of California (PSUN), a specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. The bears have done a number on this stock in 2011, with shares off by over 75%.
If you take a look at the chart for Pacific Sunwear, you’ll see that this stock was hammered from its July high of $3.16 to a recent low of $1.11 a share. After printing that low, the stock has started to change its trend to a more bullish slant since its higher lows and higher highs. Shares have also started to move back above its 50-day moving average of $1.31, which is another bullish technical sign. Now the stock is approaching a major breakout if it can manage to sustain a move and close above $1.34 to $1.35 on high volume.
>>Stocks Rising on Unusual Volume
Market players should look for a move and close over $1.35 on volume that registers close to or above its three-month average action of 831,851 shares. The stock is trading up a bit today and volume is already trending above that average volume. Keep an eye on this trend to see if it continues if the stock breaks out in the near future.
You could be a buyer of this stock once it takes out $1.35 and simply use a mental stop a few percentage points below that level. If this stock does trigger that breakout, then I would look for a monster run above some more resistance at $1.60 to $1.68. A move above those levels will put a big gap down into play that could easily push this stock into the low-to-mid-$2s.
Pacific Sunwear is a heavily shorted stock, since the current short interest as a percentage of the float stands at 14.4%. This high short interest is why I like the odds of a large percentage move if we see a high-volume breakout soon. <<<
http://stockpickr.com/5-stocks-setting-break-out.html-12
http://stockpickr.com/5-stocks-setting-break-out.html-12
>>> Another stock that’s very close to triggering a major breakout is Pacific Sunwear of California (PSUN), a specialty retailer rooted in the action sports, fashion and music influences of the California lifestyle. The bears have done a number on this stock in 2011, with shares off by over 75%.
If you take a look at the chart for Pacific Sunwear, you’ll see that this stock was hammered from its July high of $3.16 to a recent low of $1.11 a share. After printing that low, the stock has started to change its trend to a more bullish slant since its higher lows and higher highs. Shares have also started to move back above its 50-day moving average of $1.31, which is another bullish technical sign. Now the stock is approaching a major breakout if it can manage to sustain a move and close above $1.34 to $1.35 on high volume.
>>Stocks Rising on Unusual Volume
Market players should look for a move and close over $1.35 on volume that registers close to or above its three-month average action of 831,851 shares. The stock is trading up a bit today and volume is already trending above that average volume. Keep an eye on this trend to see if it continues if the stock breaks out in the near future.
You could be a buyer of this stock once it takes out $1.35 and simply use a mental stop a few percentage points below that level. If this stock does trigger that breakout, then I would look for a monster run above some more resistance at $1.60 to $1.68. A move above those levels will put a big gap down into play that could easily push this stock into the low-to-mid-$2s.
Pacific Sunwear is a heavily shorted stock, since the current short interest as a percentage of the float stands at 14.4%. This high short interest is why I like the odds of a large percentage move if we see a high-volume breakout soon. <<<
http://stockpickr.com/5-stocks-setting-break-out.html-12
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