CERE popped above the bullish pennant on above average volume today. Should this breakout follow-thru to the upside on volume & especially if CERE can take out 0.40, the stock is likely to run to at least the 0.50 area in relatively short order. T1 is set at 0.47, 3 cents below the actual resistance level and remains the sole profit target for now, although a second target at 0.71 may be added soon.

The reason that I want to see the stock follow through on above average volume is to show that buyers outnumber sellers at this point. Should the stock continue to rise into the close today, especially above the 0.40 level, that would help to validate the breakout. Otherwise, the possibility exists that the large volume spike (on the 1-mintue chart) that accompanied the breakout today was due solely to a large cluster of buy-stop orders set to trigger just above the pattern. Without additional buyers of the stock coming in to build on today’s gains, the chances of a fake-out, or false breakout are elevated. Updated 60 minute & daily charts below: