Enzo Biochem (ENZ)

[surf1944]

One more stock that could be ready to trigger a near-term breakout trade is Enzo Biochem (ENZ), an integrated life sciences and biotechnology company focused on harnessing biological processes to develop research tools, diagnostics and therapeutics and serves as a provider of test services, including esoteric tests, to the medical community. This stock is off to a bearish start in 2012, with shares off by over 25% during the last six months.

If you look at the chart for Enzo Biochem, you’ll see that this stock hit a near-term bottom in August at around $1.33 a share. Since tagging that bottom, shares of ENZ have started to uptrend towards its current price of around $1.95 a share. During that uptrend, shares of ENZ have been making mostly higher lows and higher highs, which is bullish technical price action. That move is quickly pushing ENZ within range of triggering a near-term breakout trade.

Traders should now look for long-biased trades in ENZ once it manages to clear some near-term overhead resistance levels at $2 to $2.19 a share with high volume. Look for volume off that move that registers near or above its three-month average action of 190,455 shares. If that breakout triggers soon, then ENZ will have a great chance of re-testing or possibly taking out its next major overhead resistance levels at $2.88 to $3.12 a share. Any high-volume move above $3.12 could then put $4 a share into play for ENZ.

One could look to buy ENZ off any weakness, and simply use a stop that sits right around its 50-day moving average of $1.67 a share. You could also just buy off strength once ENZ clears $2.00 to $2.19 a share with high volume, and then simply use a stop around some near-term support at $1.84 a share. Keep in mind that once ENZ clears $2.17 with volume, then it will have taken out its 200-day moving average, which is bullish technical price action.

http://www.stockpickr.com/5-stocks-poised-breakouts.html-18?puc=yahoo&cm_ven=YAHOO