What to Look For and What to Look Out For:  Look for this stock to hold onto its gains and enjoy a new 52-week high close.  Now that this issue has vaulted above its pivot point, the path of least resistance is higher and odds favor further price gains. Whenever a stock clears overhead supply or chart resistance, and jumps into new high territory, this typically bodes well for the stock's ability to add to its gains. It is important to note that this stock has encountered resistance several times in the past 12 weeks just shy of $22. That prior resistance level should now act as support. Ideally, in the days immediately ahead OMCL will follow through with additional gains on high volume to confirm the breakout.  However, if the stock reverses and trades below support the breakout would be negated, and odds would tip in favor of it spending more time consolidating. The 50-day moving average line is the next important level of technical support, and a violation of the 50 DMA would be a sell signal.  If OMCL fails to follow through, the odds of a sustained rise and meaningful gains would be greatly reduced. Always limit losses if any stock you buy closes 7-8% below your purchase price. It would be undisciplined for investors to "chase" this stock and purchase shares above the pivot point by more than+5% , which in this case is the $22.87 "maximum buy" price.

Technical Analysis: The fact that OMCL surged above resistance has bullish implications, as considerable gains on heavy volume are an important component of "accumulation" or institutional buying activity. The stock has risen from an orderly 3 month flat base.  The volume dry up during the basing period is one of the healthy aspects of its chart. Volume in the first half of today's session has already reached the necessary total (+50% above average) to trigger a proper technical buy signal.